A new lease of life for Dresselhaus
In March 2020 Nimbus acquired all shares of Dresselhaus GmbH & Co. KG, one of the largest suppliers of fasteners and fixing technology in Europe.
The company provides customers from many industries from furniture manufacturers, manufacturers of agricultural machines and the automotive supply industry to hardware traders, DIY stores and the car parts business with a wide range of products. In addition, the company also offers customers C-parts management and logistic support, relieving them of the administrative burden of C-parts sourcing and stocking.
Over the years, Dresselhaus had become caught in a vicious circle of low profitability and high debts. The company was therefore looking for a new shareholder to bring the company back to profitability. Nimbus has regularly invested in technical trading businesses and understands the specific challenges they face. The company owners appreciated the fact that Nimbus was clearly interested in continuing and restructuring operations. In combination with a reasonable purchase price and Nimbus’ excellent working relationships with lenders, this sealed the deal.
Fixing the basics
Nimbus’ first priority was to stabilise Dresselhaus’ situation. Talks were held with banks and a debt fund and steps were taken to drastically downsize the company in order to lower its break-even level and bring Dresselhaus back to profitable on its actual sales level. This was when COVID hit in Spring 2020. Nimbus then focussed on breathing new life into the brand: professionalizing procedures, acquiring new customers and improving margins.
First doing the work to fix the urgent issues will create room to invest in other improvements, such as a major ERP-project and the introduction of a new leadership and company culture among Dresselhaus’ 700 employees, divided over eight locations: six in Germany, one in Turkey and one in Russia.
With annual sales of EUR 200 million Dresselhaus is one of the largest companies that Nimbus has purchased to date. The restructuring will require great investments in both effort and resources, but the company offers huge potential for the future.
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