POSSEHL Mittelstandsbeteiligungen GmbH (PMB) is a long-term investor specialising in SMEs without succession plans. PMB also acts as an incubator for new business areas within the POSSEHL Group. The best example of this is the area of labelling systems, which is now operating as a separate division after only six years due to a successful buy-and-build strategy. The result: strong growth, targeted expansion, 8-fold valuation.
POSSEHL Mittelstandsbeteiligungen (PMB) has made a name in the last few years as a long-term-oriented investor in SMEs. The primary focus: SMEs without succession plans. As part of the globally operating, financially strong POSSEHL Group, PMB is one of the Group’s nine business divisions.
INCUBATOR FOR NEW BUSINESS AREAS
What is less well-known is that within the POSSEHL Group, PMB also plays the role of incubator for new business areas. The goal: Identify sectors and technology areas with a high potential for the future and then build on them continuously. “This buy-and-build strategy is the logical continuation of a long-term commitment as an investor”, says PMB CEO Tobias Krauss. “We combine the organic development of the individual companies with strategic acquisitions – and thus make every single company and the whole area stronger.”
LABELLING SYSTEMS AS AN EXAMPLE OF SUCCESS
The first milestone was the acquisition of Logopak, a specialist in print & apply systems for the labelling of products. Other potential in this area quickly became apparent – in terms of both geographic and technical additions. The buy-and-build decision for labelling systems was the logical consequence.
In 2014, the Danish LSS was bought – and with it a strong footprint in Scandinavia and expertise in the pharmaceutical sector. The spin-off of the German NOVEXX Solutions from the American Avery Group followed in 2015. The worldwide partner network as well as suitable additions to the product portfolio were strategically valuable for this area in particular. The most recent milestones are the acquisition of the Italian company EIDOS and the Swedish label manufacturer Nordvalls.
“Every company has its own strengths and a fundamental position in the market. Each could work well on its own – but as a group, we are significantly increasing the impact”, commented Tobias Krauss. And the facts support PMB’s approach.
APPRECIATION: 8X – TURNOVER: 125 MILLION. – DECISION ON SPIN-OFF
As an interim highlight of the growth story, the labelling systems division has now been established as a ninth, proprietary business division within the POSSEHL Group. The decision paved the way for the 100 million EUR turnover volume to be exceeded and an outlook for further growth. In only six years, the value of the company cluster was increased by a factor of 8. With a total of EUR 125 million in turnover, the labelling Systems division now operates with 750 employees in 11 countries.
This development is closely linked to Dietrich Barsch, who has been responsible for Logopak and NOVEXX Solutions within PMB from the outset and has also contributed significantly to the recent acquisitions of EIDOS and Nordvalls. Dietrich Barsch, who heads the entire business division today, looks positively toward the future: “With the recent acquisitions, we are in a very good position to further strengthen each company and the entire business. We will continue to focus on a healthy, long-term-oriented combination of organic growth and strategic effects.”