Munich / Andernach – SHD AG, a provider of industry-specific ERP (“enterprise resource planning”) and IT services has won funds advised by Bregal Unternehmerkapital (“Bregal Unternehmerkapital”) as a new investor. The company develops innovative software designed to support the furniture and kitchen retail industry in their daily processes and gets them ready for their digital future. Previous owners were funds advised by the investment company Elvaston Capital (“Elvaston Capital”) and the management. Elvaston Capital acquired SHD in 2014 and will continue to hold a stake in the SHD Group following the completion of the transaction – just like the entire SHD Management Board consisting of Stefan Hahne, Bernd Hilgenberg and Hans Pfrommer.
Retail software and creative planning systems
The SHD Group is based in Andernach, a city in the southwestern German state of Rhineland-Palatinate. It employs about 460 people and generates an annual turnover of around €45 million. The company markets ERP and planning software for furniture and kitchen retailers. Major business focus include ERP, warehouse logistics in furniture retailing as well as planning and visualization software for kitchen and bathrooms, living rooms and upholstery. SHD also offers cross-industry finance and human resources software.
Established in 1983, the company is the German market leader for ERP systems in furniture retail and has a strong position in the kitchen-planning market. As a result, it can benefit from an extensive industry experience and know-how.
Embracing growth opportunities collaboratively
Additionally, the European furniture and kitchen software market offers promising conditions for future growth. “If the opportunity arises, suitable add on acquisitions can drive scale- and synergy effects, which can sustainably strengthen the company’s market position,” says Stefan Hahne, CEO at SHD AG.
Both parties have agreed not to disclose the sum and further details of the transaction. Completion is expected by the end of July 2017.
SHD is a specialised provider of ERP, planning and payroll software, serving as a one-stop shop to furniture and kitchen & bathroom retailers. It is headquartered in Andernach (Germany) and has ~460 employees (as of January 2017). In 2014, SHD was acquired by the captive small-cap Private Equity Fund Elvaston Capital II, with the remainder mainly owned by Management and. SHD’s ERP software mainly targets the furniture segment and is represented by business unit SHD EH. Furniture retailers require highly specialised software due to the number of customisation options and pricing variations in the furniture space. The second main product is KPS, a kitchen planning software application for kitchen retailers.
About Bregal Unternehmerkapital
Bregal Unternehmerkapital is part of a family-owned business that has been built up over generations. Its investment activity is based on long-term commitment and independent of developments in the financial markets. Bregal Unternehmerkapital identifies companies, with strong management teams, that are regarded as market leaders or “hidden champions” in their particular segment. Flexible financing and transaction structures enable it to acquire both minority and majority stakes. In doing so, Bregal Unternehmerkapital is also able to handle complex industry spin-offs, management buy-outs and succession situations. Bregal Unternehmerkapital aims to help companies to achieve a sustained improvement in sales and profitability, and provides them with capital, proven financial expertise and access to a broad network of entrepreneurs and industry experts.
About Elvaston Capital
Elvaston is an entrepreneur-led private equity firm specialising in small to medium-sized companies located within the German-speaking region. Elvaston takes a straightforward, individual approach to guiding profitable companies operating in growth industries towards long-term value growth.