bavaria yachtbau private equity

Bavaria Yachts is Back in Business

19 September 2018 Dominique SALANDRE News 0

Bavaria Yachts is saved !   A private equity fund advised by the German investment company CMP Capital Management-Partners will continue Bavaria Yachts. The subsidiary Bavaria Catamarans SAS is also being acquired and all 800 employees working in Giebelstadt, Germany and Rochefort, France will transfer to the purchaser.

A private equity fund advised by the Berlin-based investment company CMP Capital Management-Partners will acquire the entire business of Bavaria Yachtbau GmbH and continue its operations. It will also acquire all shares in French subsidiary Bavaria Catamarans SAS. All 550 employees of BAVARIA YACHTS in Giebelstadt and all 250 employees of BAVARIA CATAMARANS in Rochefort will transfer to the purchaser. A corresponding purchase contract between the management of Bavaria Yachtbau GmbH and CMP was concluded and notarized today. The creditors’ committee gave its approval, as did the administrator of Bavaria Yachtbau GmbH, Dr. Hubert Ampferl. The purchase will be completed after merger control clearance by the German Federal Cartel Office, which is expected in a couple of weeks. The parties have agreed not to disclose the purchase price. 

CMP Capital Management-Partners is a German investment company that has specialised in the acquisition of companies in distress in Germany, Austria and Switzerland since its foundation in 2000. CMP’s private equity funds are advised by Berlin-based CMP Capital Management-Partners. With the investment in a company, CMP employees assume operative management responsibilities on site. In the case of Bavaria, Dr. Ralph Kudla, restructuring expert and partner at CMP, will join the executive board. 

Kai Brandes, Managing Director of CMP Capital Management-Partners explains: “We are convinced of Bavaria’s global market potential and will sustainably develop the company. The restructuring measures will focus on regaining market share and improving production costs.”

Restructuring expert Dr. Tobias Brinkmann, Managing Director of Bavaria Yachtbau since insolvency proceedings began in April 2018 states: “Bavaria is an outstanding company with a strong brand, compelling products and a highly dedicated team. We are pleased to have found a well-known and experienced buyer in CMP who will lead Bavaria into the future. The entire management would like to thank our employees, yacht dealers, customers and suppliers. They have all supported Bavaria Yachtbau during the insolvency proceedings. The fact that Bavaria has been able to successfully build and deliver 220 yachts during the last five months shows how committed and reliable our staff is.”

Finalists nominated for Best of Boats Awards 2017 Awards ceremony on 23 November at BOAT & FUN BERLIN

• Bavaria Yachtbau GmbH
• Bavaria Yachts
• Bavaria Yachts saved
• German boat builder
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• Private Equity fund

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A Private Equity fund will Acquire the Entire Business of Bavaria Yachtbau

• A private equity fund advised by the German investment company CMP Capital Management-Partners will continue Bavaria Yachtbau.
• All 800 employees working in Giebelstadt, Germany and Rochefort, France will transfer to the purchaser.

A private equity fund advised by the Berlin-based investment company CMP Capital Management-Partners will acquire the entire business of Bavaria Yachtbau and continue its operations. It will also acquire all shares in French subsidiary Bavaria Catamarans S.A.S. All 550 employees of Bavaria Yachtbau in Giebelstadt and all 250 employees of Bavaria Catamarans in Rochefort will transfer to the purchaser. 

A corresponding purchase contract between the management of Bavaria Yachtbau GmbH and CMP was concluded and notarized today. The creditors’ committee gave its approval, as did the administrator of Bavaria Yachtbau GmbH, Dr. Hubert Ampferl. The purchase will be completed after merger control clearance by the German Federal Cartel Office, which is expected in a couple of weeks. The parties have agreed not to disclose the purchase price.

CMP Capital Management-Partners is a German investment company that has specialized in the acquisition of companies in distress in Germany, Austria, and Switzerland since its foundation in 2000. CMP’s private equity funds are advised by Berlin-based CMP Capital Management-Partners. With the investment in a company, CMP employees assume operative management responsibilities on site. In the case of Bavaria, Dr. Ralph Kudla, restructuring expert, and partner at CMP, will join the executive board.

Kai Brandes, Managing Director of CMP Capital Management-Partners explains: “ We are convinced of Bavaria’s global market potential and will sustainably develop the company. The restructuring measures will focus on regaining market share and improving production costs. ”

Restructuring expert Dr. Tobias Brinkmann, Managing Director of Bavaria Yachtbau since insolvency proceedings began in April 2018 states: “ Bavaria is an outstanding company with a strong brand, compelling products, and a highly dedicated team. We are pleased to have found a well-known and experienced buyer in CMP who will lead Bavaria into the future. The entire management would like to thank our employees, yacht dealers, customers, and suppliers. They have all supported Bavaria Yachtbau during the insolvency proceedings. The fact that Bavaria has been able to successfully build and deliver 220 yachts during the last five months shows how committed and reliable our staff is. ”

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Bavaria was heading the right way, introducing robotics in their manufacturing, improving hull build quality with vacuum infusion, but doesn’t matter what you do to reduce costs and improve quality if yacht buyers don’t want your product. Bavaria’s designs were outdated with bulky lines, cluttered decks. Once they finesse their designs they should be back on track. Their latest C-line is a step in the right direction.

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Bavaria is back in business as private equity fund buys entire company

• Stef Bottinelli

The future of German boat builder Bavaria Yachtbau has been secured following its acquisition for an undisclosed sum by a private equity fund

Bavaria Yachtbau went into self administration in April following the refusal of its backers to continue funding the business, causing a cash flow shortage that threatened to halt production and put up to 800 jobs in jeopardy.

The private equity fund, CMP Capital Management-Partners, has bought the entire Bavaria business including its French subsidiary Bavaria Catamarans S.A.S. All 550 employees of Bavaria Yachtbau in Giebelstadt and all 250 employees of Bavaria Catamarans in Rochefort will transfer to the purchaser.

The announcement came on the second day of the Southampton Boat Show , giving UK dealers Clipper Marine the chance to reassure existing and potential Bavaria customers that its business as usual for the popular range of sail and motor boats. The purchase is subject to merger control clearance by the German Federal Cartel Office, but formal approval is expected in a couple of weeks.

Restructuring expert Dr. Tobias Brinkmann, Managing Director of Bavaria Yachtbau since insolvency proceedings began in April 2018, commented: “Bavaria is an outstanding company with a strong brand, compelling products and a highly dedicated team. We are pleased to have found a well-known and experienced buyer”.

CMP, which specialises in the acquisition of German companies in distress, will assume operative management responsibilities on site. Dr. Ralph Kudla, restructuring expert and partner at CMP, will join the executive board of Bavaria Yachtbau. Kai Brandes, Managing Director of CMP Capital Management-Partners said: “We are convinced of Bavaria’s global market potential and will sustainably develop the company. The restructuring measures will focus on regaining market share and improving production costs.”

Story by Nick Burnham at Motor Boat & Yachting

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Bavaria acquired by cmp capital management partners.

German private equity firm CMP Capital Management Partners (CMP) is to become the new owner of Bavaria Yachtbau; one of the yachting industry’s most high-profile builders of motorboats, sailboats and catamarans.

The manufacturer fell into administration earlier this year but was able to strike a temporary deal to maintain operations to fulfil a sizable order book until a new backer could be found. Bavaria has delivered around 200 boats since the insolvency petition in April.

CMP has announced that it will acquire the entire Bavaria Yachtbau business including all shares in French subsidiary Bavaria Catamarans S.A.S from Oaktree Capital and Anchorage Capital, which bought the business in October 2009 for approximately €300m. The acquisition at that time included a cash injection of €55m and the previous owner Bain Capital’s write-down of debt facilities in all totalling about €960m at the time.

According to the company statement, the deal between Bavaria’s management and CMP was approved by the creditors’ committee and Bavaria’s administrator Dr. Hubert Ampferl, however the purchase can only be completed after merger control clearance by the German Federal Cartel Office, which is expected to be in a couple of weeks.

All 550 employees at the Giebelstadt plant in Germany and all 250 employees at the catamaran production facility in Rochefort, France will transfer to the purchaser. CMP will assume on-site operational management led by restructuring expert and partner Dr Ralph Kudla who will join the executive board.

“We are convinced of Bavaria’s global market potential and will continue to develop the company sustainably,” stated Kai Brandes, managing director of CMP. “The restructuring measures will focus on regaining market share and improving production costs.”

Dr. Tobias Brinkmann, the restructuring expert who has been overseeing Bavaria’s operations since insolvency proceedings began, said. “Bavaria is an outstanding company with a strong brand, compelling products and a highly dedicated team. We are pleased to have found a well-known and experienced buyer in CMP who will lead Bavaria into the future and would like to thank our employees, dealers, customers and suppliers who have all supported Bavaria Yachtbau during the insolvency proceedings.”

About Bavaria Yachtbau

Started in 1978, Bavaria was building around 3,500 yachts per year at Giebelstadt, with sales of €271m for the 2006 fiscal year, and €79m in earnings before interest, tax, depreciation and amortisation (EBITDA).

When sold in 2007 for a reported €1.3 billion to Bain Capital – the industry’s second highest-ever purchase valuation after Candover’s 2006 acquisition of 60% of the Ferretti Group for €1.7bn – the company was owned by two equal shareholders, the wife of founder and then managing director Winfried Herrman, and his partner Josef Meltl who rescued the company in the mid-1980s during another period of financial difficulties by purchasing some 300 unsold stock boats.

About CMP Capital Management Partners

Founded in 2000, CMP Capital Management Partners is a German investment company that specialises in the acquisition of distressed companies in turnaround situations and restructuring investments in mid-size companies based in Germany, Austria and Switzerland.

CMP describes itself as a “temporary partner” that helps companies emerge from a crisis in order to grow again after a period of stabilisation. Typically, CMP aims for a holding period of three to seven years.

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Buyer confirmed for Bavaria Yachts

• Katy Stickland
• September 17, 2018

Hundreds of jobs have been secured following the announcement that a buyer has been found for Bavaria Yachts

Understand boat statistics Credit: Bavaria Yachts

17 September 2018

Bavaria Yachts has been bought by a private equity fund advised by the German investment company CMP Capital Management-Partners.

The move secures 800 jobs in Germany and France.

The yacht builders went into self-administration in April, allowing the firm’s management to remain operational while new investors were sought. This also meant Bavaria could continue to build and deliver 220 yachts during that period.

The private equity fund will also acquire all shares in the French subsidiary Bavaria Catamarans SAS.

‘All 550 employees of BAVARIA YACHTS in Giebelstadt and all 250 employees of BAVARIA CATAMARANS in Rochefort will transfer to the purchaser,’ said Bavaria in a statement.

The purchase will be completed after merger control clearance by the German Federal Cartel Office, which is expected in a couple of weeks. The parties have agreed not to disclose the purchase price.

CMP Capital Management-Partners is a German investment company that has specialised in the acquisition of companies in distress in Germany, Austria and Switzerland since its foundation in 2000.

With the investment in a company, CMP employees assume operative management responsibilities on site. In the case of Bavaria, Dr. Ralph Kudla, restructuring expert and partner at CMP, will join the executive board.

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Commenting, the managing director ofCMP Capital Management-Partners, Kai Brandes, said: ‘We are convinced of Bavaria’s global market potential and will sustainably develop the company. The restructuring measures will focus on regaining market share and improving production costs.’

Restructuring expert Dr. Tobias Brinkmann, managing director of Bavaria Yachtbau since insolvency proceedings began in April 2018, said Bavaria was an ‘outstanding company with a strong brand, compelling products and a highly dedicated team.’

‘We are pleased to have found a well-known and experienced buyer in CMP who will lead Bavaria into the future. The entire management would like to thank our employees, yacht dealers, customers and suppliers,’ he stated.

‘ They have all supported Bavaria Yachtbau during the insolvency proceedings. The fact that Bavaria has been able to successfully build and deliver 220 yachts during the last five months shows how committed and reliable our staff is,’ added Dr Brinkmann

22 May 2018

Bavaria Yachts has announced it is in the process of securing new investment and hopes to make an announcement in July.

The German yacht builder is continuing to take orders and deliver new boats.

‘Production has been stabilised and deliveries are continuing: more than 30 yachts have left the shipyard over the past two weeks and have been handed over to customers,’ said Bavaria in a statement.

‘All 600 employees are on duty, and agreements were reached with all major suppliers for further delivery against short payment terms,’ it added.

Bavaria went into self-administration last month. This allowed the firm’s management to remain operational while new investors are sought.

It only affected operations at Bavaria’s German operations. Nautitech – Bavaria’s catamaran arm – was unaffected.

The German shipyard said management and administrators have started an ‘investor process’ to rebuild Bavaria Yachts for the future.

‘The objective is to be able to present an investor in July 2018,’ said Bavaria.

The firm, which recently celebrated its 40th anniversary, was sold by its founder, Winfried Herrmann to the private equity group, Bain Capital in June 2007 for around €1.1 billion.

The American investment firms, Oaktree Capital and Anchorage Capital Group then became creditors post financial crisis in 2008.

As part of restructuring, Oaktree and Anchorage waived a substantial majority of their loans and became majority shareholders, investing ‘significant resource’.

‘Unfortunately, Bavaria Yachtbau was unable to recover operational profitability,’ said a spokesman for Oaktree and Anchorage.

As a result, Bavaria went into self-administration, and restructuring expert, Dr Tobias Brinkmann was appointed to find new investors.

‘We are continuing the operation and want to go into the coming order season with a new investor,’ stressed Dr Brinkmann.

‘The first expressions of interest have already been received, and we are also actively approaching potential investors,’ he added.

24 April 2018

Bavaria Yachts has confirmed that is has now gone into self-administration.

The German shipyard said boat production and deliveries will continue until June 2018. Wages and salaries for Bavaria’s 600 workers are also secure until then.

The self-administration, which allows the firm’s management to remain operational while an investor for the company is sought, only affects operations at Bavaria’s German operations.

Nautitech – Bavaria’s catamaran arm – remains unaffected and trading, delivery and after sales service at its base in Rochefort, France continues as normal.

‘In the current situation, we want to supply our customers with the usual high quality, stressed Bavaria’s chief operating officer, Erik Appel.

Dr. Ing. Tobias Brinkmann, specialist lawyer for insolvency law and partner in the law firm Brinkmann & Partner, joins the management team. Bavaria’s previous CEO, Lutz Henkel, left the management board last week.

Bavaria said its ‘top priority is now the search for an investor’

‘We have years of experience building high-quality yachts and are industry leaders in many areas,’ said Appel.

Bavaria said that against the background of a good market positioning, the aim was to ‘put the operation on a sound financial basis’.

Bavaria was founded in 1978 and is considered one of the market leaders in European yacht building. In January, it announced the new flagship C65 as well as the C45 models at Boot Düsseldorf.

Payment of wages and salaries for the months of April to June 2018 will be secured by bankruptcy pre-financing.

In a statement, Nautitech Catamarans, said: ‘To this day, the catamaran business remains in Rochefort France. It is an independent French company with its own employees, suppliers and bank accounts. Seen as the “jewel in the crown” of the Bavaria group, the well managed and profitable catamaran business is already attracting interest from potential buyers.

‘Whilst we understand that both the catamaran division and the struggling German operation will probably soon be under new ownership, or indeed ownerships, the operation of the catamaran business is completely unaffected by the situation in Germany. Therefore trading, delivery and after sales service continue as before.’

20 April 2018

The German yacht building giant Bavaria is expected to issue a statement later today, explaining that it is entering administration.

It is thought that the administration will apply to the Bavaria monohulls, but not to Bavaria catamarans. The company, which announced the new flagship C65 as well as the C45 models at Boot Düsseldorf earlier this year, is expected to continue construction and delivery of all current orders and will not be closing its factory.

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Future of Bavaria Yachtbau secured

A private equity fund advised by the Berlin-based investment company CMP Capital Management-Partners will acquire the entire business of Bavaria Yachtbau and continue its operations.

It will also acquire all shares in French subsidiary Bavaria Catamarans SAS. All 550 employees of Bavaria Yachtbau in Giebelstadt and all 250 employees of Bavaria Catamarans in Rochefort will transfer to the purchaser.

A corresponding purchase contract between the management of Bavaria Yachtbau GmbH and CMP was concluded and notarized today. The creditors' committee gave its approval, as did the administrator of Bavaria Yachtbau GmbH, Dr. Hubert Ampferl. The purchase will be completed after merger control clearance by the German Federal Cartel Office, which is expected in a couple of weeks. The parties have agreed not to disclose the purchase price.

CMP Capital Management-Partners is a German investment company that has specialised in the acquisition of companies in distress in Germany, Austria and Switzerland since its foundation in 2000. CMP’s private equity funds are advised by Berlin-based CMP Capital Management-Partners. With the investment in a company, CMP employees assume operative management responsibilities on site. In the case of Bavaria, Dr Ralph Kudla, restructuring expert and partner at CMP, will join the executive board.

Kai Brandes, Managing Director of CMP Capital Management-Partners explains: "We are convinced of Bavaria's global market potential and will sustainably develop the company. The restructuring measures will focus on regaining market share and improving production costs."

Restructuring expert Dr Tobias Brinkmann, Managing Director of Bavaria Yachtbau since insolvency proceedings began in April 2018 states: "Bavaria is an outstanding company with a strong brand, compelling products and a highly dedicated team. We are pleased to have found a well-known and experienced buyer in CMP who will lead Bavaria into the future. The entire management would like to thank our employees, yacht dealers, customers and suppliers. They have all supported Bavaria Yachtbau during the insolvency proceedings. The fact that Bavaria has been able to successfully build and deliver 220 yachts during the last five months shows how committed and reliable our staff is." [skipperondeck.gr]

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Bavaria Yachts sold: 800 jobs secured

• Katy Stickland
• September 17, 2018

Bavaria Yachts has announced it has been bought by a private equity fund, securing 800 jobs in Germany and France

17 September 2018

Bavaria Yachts has been bought out of administration by a private equity fund.

The yacht builder went into self-administration in April, and has been looking for new backers since then. The move allowed the firm’s management to remain operational while new investors were sought.

In a statement, Bavaria said the unnamed private equity fund, which is advised by the Berlin-based investment company CMP Capital Management-Partners, has acquired Bavaria Yachts and all of the shares in the French subsidiary Bavaria Catamarans SAS.

All 550 employees of BAVARIA YACHTS in Giebelstadt and all 250 employees of BAVARIA CATAMARANS in Rochefort will transfer to the purchaser.

The purchase will be completed after merger control clearance by the German Federal Cartel Office, which is expected in a couple of weeks.

Both parties have agreed not to disclose the purchase price.

CMP Capital Management-Partners is a German investment company that has specialised in the acquisition of companies in distress in Germany, Austria and Switzerland since its foundation in 2000.

With the investment in the company, CMP employees assume operative management responsibilities on site. In the case of Bavaria, Dr. Ralph Kudla, restructuring expert and partner at CMP, will join the executive board.

The managing director of CMP Capital Management-Partners, Kai Brandes, said: ‘We are convinced of Bavaria’s global market potential and will sustainably develop the company. The restructuring measures will focus on regaining market share and improving production costs.’

Restructuring expert Dr. Tobias Brinkmann, who has been managing director of Bavaria Yachtbau since insolvency proceedings began in April 2018, praised the commitment and reliability of Bavaria staff, who have built and delivered 220 yachts during the last five months.

‘Bavaria is an outstanding company with a strong brand, compelling products and a highly dedicated team. We are pleased to have found a well-known and experienced buyer in CMP who will lead Bavaria into the future,’ said Dr Brinkmann.

‘The entire management would like to thank our employees, yacht dealers, customers and suppliers. They have all supported Bavaria Yachtbau during the insolvency proceedings,’ he added.

22 May 2018

Bavaria Yachts says it has already had interest from potential investors, and hopes to make an announcement in July.

In a statement, the German yacht builder said production had ‘stabilised’ at its Giebelstadt yard, and it was continuing to take new orders and deliver new boats.

‘More than 30 yachts have left the shipyard over the past two weeks and have been handed over to customers,’ said the boat builder.

‘All 600 employees are on duty, and agreements were reached with all major suppliers for further delivery against short payment terms,’ it added.

‘The objective is to be able to present an investor in July 2018.’

There was widespread surprise when Bavaria announced it was going into self-administration last month.

The self-administration move allowed the firm’s management to remain operational while the business is re-organised

It only affected operations at Bavaria’s German operations. Nautitech – Bavaria’s catamaran arm – was unaffected.

Restructuring expert, Dr Tobias Brinkmann, who was appointed to find new investors, said: ‘We are continuing the operation and want to go into the coming order season with a new investor.

‘The first expressions of interest have already been received, and we are also actively approaching potential investors,’ he added.

24 April 2018

Bavaria Yachts has confirmed that it is now in self-administration, allowing the management to remain operational as it seeks new financial backing.

The move only affects Bavaria’s operations in Giebelstadt, Germany. Nautitech – Bavaria’s catamaran arm – remains unaffected and trading, delivery and after sales service at its base in Rochefort, France continues as normal.

600 workers are being kept updated, and their salaries and wages are secured by bankruptcy pre-financing until June 2018. Boat production and deliveries will also continue until then.

‘In the current situation, we want to supply our customers with the usual high quality,’ stressed Bavaria’s chief operating officer, Erik Appel in a statement released late yesterday.

Dr. Ing. Tobias Brinkmann, specialist lawyer for insolvency law and partner in the law firm Brinkmann & Partner, joins the management team.

Bavaria’s previous CEO, Lutz Henkel, left the management board last week.

Bavaria said its ‘top priority is now the search for an investor’, and against the background of a good market position, the aim was to ‘put the operation on a sound financial basis’.

‘We have years of experience building high-quality yachts and are industry leaders in many areas,’ said Appel.

Last month, Bavaria marked its 40th anniversary. It is considered one of the market leaders in European yacht building.

In a statement, Nautitech Catamarans, said: ‘To this day, the catamaran business remains in Rochefort France. It is an independent French company with its own employees, suppliers and bank accounts. Seen as the “jewel in the crown” of the Bavaria group, the well managed and profitable catamaran business is already attracting interest from potential buyers.

‘Whilst we understand that both the catamaran division and the struggling German operation will probably soon be under new ownership, or indeed ownerships, the operation of the catamaran business is completely unaffected by the situation in Germany. Therefore trading, delivery and after sales service continue as before.’

22 April 2018

Despite no official communique from the company itself, reports from Germany on Friday (20 April) indicate that Bavaria Yachts has gone into administration.

The company employs over 500 people in Giebelstadt, Bavaria making power and sail yachts up to 65ft long. A separately owned multihull brand, Nautitech, is based in La Rochelle, France and is expected to continue business as usual, according to several reports.

A statement is expected early in the week.

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Bavaria Yachts Acquired by Private Equity Fund

Bavaria Yachts, including Bavaria Catamarans and their 800 employees will transfer to the purchaser within a few weeks  (sail-world)

A private equity fund advised by the Berlin-based investment company CMP Capital Management-Partners will acquire the entire business of Bavaria Yachtbau and continue its operations. It will also acquire all shares in French subsidiary Bavaria Catamarans S.A.S. All 550 employees of Bavaria Yachtbau in Giebelstadt and all 250 employees of Bavaria Catamarans in Rochefort will transfer to the purchaser.  Read More

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Nächster PE-Investor übernimmt Bavaria Yachtbau

Der Finanzinvestor CMP übernimmt den insolventen Yachtbauer Bavaria. CMP ist bereits das dritte PE-Haus, das bei Bavaria sein Glück versucht. Die Sanierung des Bootsherstellers dürfte eine Mammutaufgabe werden.

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Die langwierige Suche nach einem Käufer für den insolventen Yachtbauer Bavaria hat ein Ende. Wie ein Sprecher des im Zuge der Insolvenz eingesetzten Geschäftsführers Tobias Brinkmann mitteilte, übernimmt der Private-Equity-Investor CMP Capital Management Partners das fränkische Unternehmen für einen nicht genannten Kaufpreis. Branchenkennern zufolge soll Bavaria in den jüngsten Verhandlungen in etwa mit einem zweistelligen Millionenbetrag bewertet worden sein.

Der Kaufvertrag umfasst die Werft in Giebelstadt sowie die französische Tochtergesellschaft Bavaria Catamarans. Alle 800 Mitarbeiter werden übernommen. Der Deal muss noch von den Kartellbehörden abgesegnet werden.

Potentielle Käufer für Bavaria sprangen ab

Die Suche nach potentiellen Investoren hat fast zwei Monate länger gedauert als geplant. Ursprünglich hatte Geschäftsführer Brinkmann bereits Ende Juli einen neuen Eigentümer präsentieren wollen.

Zwischenzeitlich schien die Käufersuche auch erfolgversprechend zu verlaufen. So soll nach Informationen des „Handelsblatts“ beispielsweise der französische Bavaria-Konkurrent Beneteau Interesse an einer Übernahme gezeigt haben. Auch die Münchener Beteiligungsgesellschaft Aurelius, die seit 2011 bei dem Bavaria-Wettbewerber Hanseyachts engagiert ist, soll sich Bavaria angeschaut haben. Doch letztendlich schlug keiner der beiden zu.  

Anchorage und Oaktree schickten Bavaria in die Insolvenz

In welcher Lage sich der Bootshersteller befindet, ist schwer zu beurteilen. Bavaria musste im April nach mehreren Verlustjahren in Folge Insolvenz in Eigenverwaltung beantragen . Als Insolvenzverwalter wurde damals Hubert Ampferl eingesetzt. Die bisherigen Eigner, die Hedgefonds Anchorage und Oaktree, wollten kein weiteres Geld mehr in das kriselnde Unternehmen stecken. Bis dahin hatten beide Investoren Bavaria immer wieder mit „erheblichen Ressourcen“ unterstützt, teilten Anchorage und Oaktree damals mit. Doch die erhoffte Rückkehr in die Gewinnzone schlug ein ums andere Mal fehl. 

Der neue Eigentümer CMP glaubt, nun nach Absolvierung des Insolvenzprozesses bessere Aussichten zu haben: „Wir sind von den weltweiten Marktpotenzialen der Bavaria überzeugt“, sagte CMP-Chef Kai Brandes gegenüber dem „Handelsblatt“. Demnach liegt der Fokus seiner Strategie auf der Restrukturierung der Werft und dem Rückgewinn von Marktanteilen. Dafür schickt CMP Ralph Kudla zu Bavaria, der als operativer Manager die Sanierung des Unternehmens vorantreiben soll. 

Kann CMP Bavaria Yachtbau retten?

Ein nachhaltiger Turnaround gilt in Branchenkreise jedoch als schwierig. Dies liegt auch an der Art, wie das Unternehmen aufgestellt ist. Bavaria-Gründer Winfried Herrmann hatte bei den Franken die Serienfertigung im Yachtbau eingeführt und die gesamte Produktion entsprechend angepasst. Damit feierte er anfangs so große Erfolge,  dass die US-Beteiligungsgesellschaft Bain Capital im Jahr 2007 dazu bereit war, über 1 Milliarde Euro für den Kauf der Bootsfabrik auf den Tisch zu legen. Der Deal wurde zum Synonym der Exzesse am deutschen Private-Equity-Markt im Vorfeld der Finanzkrise.

Doch inzwischen können Boote, die in Serie gefertigt wurden, nur noch schwer an den Mann gebracht werden, behaupten Branchenkenner. Kunden hätten heutzutage häufig teure Extrawünsche, die sich im Rahmen einer Serienproduktion nur schwer realisieren ließen. Ein grundlegender Umbau der Fertigungsprozesse wäre eine Mammutaufgabe für CMP, die nicht zu den größten Turnaround-Investoren Deutschlands zählt.

andreas.mehring[at]finance-magazin.de

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Bavaria Yachts emerges from abyss thanks to CMP

The bill of sale between Bavaria Yachtbau Gmb H and CMP has been signed these days and the creditors’ committee has approved the transaction together with Hubert Ampferl, CEO of Bavaria Yachtbau GmbH. The final step will the validation of the document by the German Federal Cartel Office ( Bundeskartellamt) which is expected in a couple of weeks.

” We are convinced of Bavaria Yachts’s global market potential and will sustainably develop the company. The restructuring measures will focus on regaining market share and improving production costs”.

The comment was echoed by the words of  Tobias Brinkmann , CEO of Bavaria Yachtbau:

So, CMP society will focus not only on the turnaround management and therefore the repositioning of the German shipyard on the market but it will have also to complete all the projects undertaken by Bavaria Yachts through operative support and specific managerial measures. CMP will also acquire all shares in the French subsidiary Bavaria Catamarans S.A.S . The private equity fund has also contributed to save the 550 employees of Bavaria Yachts in Giebelstadt and all 250 workers of Bavaria Catamarans in Rochefort .

Now, the future of Bavaria Yachts is in the hands of an excellent buyer, specialized in this kind of operations. We just have to wait for next developments in order to see which strategies will be put in action to fix the company.

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Continuous delivery resumed, Investor process started at Bavaria Yachts

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Gaining additional practical experience, learning new things and exchanging ideas with each other - more than 35 service technicians from our dealers were able to do all of this during a week-long BAVARIA service workshop.

It is the Oscar of the yachting industry, the European Yacht of the Year Award. The BAVARIA YACHTS team is all the more proud that the BAVARIA C46 was able to beat six competitors in the "Family Cruiser" category.

Am Freitag, den 12.01.2024 hat die letzte in Giebelstadt gefertigte VISION 42 die Werft verlassen. Das Team von BAVARIA YACHTS hat ihr einen gebührenden Abschied bereitet, bevor die Modellreihe eingestellt wird.

This year's world premiere - the BAVARIA SR33 - has been nominated for four awards. It has already secured one prize. But what about the other awards?

BAVARIA YACHTS got off to a flying start at the Cannes Yachting Festival, where the German shipyard was represented with a total of eight motor and sailing yachts.

The events in the Baltic Sea had some devastating consequences for our ships and customers. BAVARIA has taken a number of measures to provide the best possible assistance to those affected.

With the world premiere of the new BAVARIA C46, BAVARIA YACHTS starts the new boat show season at the Yachting Festival in Cannes. The new BAVARIA C46 develops, interprets and expands the design concept of the German shipyard's very successful C-LINE.

With the new BAVARIA C46, BAVARIA YACHTS presents the next generation of the C-LINE at the 2023 Yachting Festival in Cannes. The nomination for the 2024 European Yacht of the Year is a further confirmation of this completely new development.

After 45 years of unforgettable moments on the water with your BAVARIA, we would like to invite you – come on board and join us as we embark on the next chapter of BAVARIA YACHTS.

Many have already seen her at boot Düsseldorf at the end of January, the 2023 motor yacht world premiere BAVARIA SR33. After that, the new member of the SR family went on a grand tour across Europe and visited various boat shows.

As part of a project assignment, our BAVARIA boat building apprentices refurbished a boat for children, which was donated to the local kindergarten in Giebelstadt, where it is now available to the children as a permanent feature of the playground.

BAVARIA YACHTS presents its world premiere BAVARIA SR33 at boot. Like the successful motor yachts BAVARIA SR41 and SR36, she clearly follows BAVARIA YACHTS' new SR philosophy.

The BAVARIA C46 is BAVARIA YACHTS' new sailing yacht of the year for 2023.

On the first Saturday of boot 2023 in Duesseldorf, BAVARIA YACHTS unveiled its world premiere BAVARIA SR33 and celebrated the digital premiere of the new sailing yacht BAVARIA C46 under the curious eyes of visitors and the trade press.

The new BAVARIA SR36 has been awarded the 2022 Best of Boats Award and has also been nominated for two more awards.

With the new BAVARIA C46, BAVARIA YACHTS announce an impressive addition to their C-LINE sailing yachts for 2023.

With the BAVARIA SR33, BAVARIA YACHTS introduces another model of their successful SR‐LINE, following the SR41 & the SR36, for the 2023 season. As with all motor yachts of the SR-LINE, the focus during development was on creating space for life on deck.

At the Cannes Yachting Festival at the beginning of September, BAVARIA YACHTS not only successfully presented three French premieres, but was also pleased to receive a nomination for its new BAVARIA SR36 as European Powerboat of the Year.

The first innovative new OPEN TOP model of the BAVARIA SR36 celebrated its world premiere in one of Europe’s most beautiful cities, Venice. With its flat windshield, the OPEN TOP combines a perfectly open driving experience with the protection of a hard t

The overland journeys that a BAVARIA covers from the yard in Giebelstadt to the customer are sometimes even more spectacular than any voyage. This was the situation for a BAVARIA R55 on its journey from Marina Saal to the French Mediterranean coast.

The time has finally come! The new BAVARIA SR36 will celebrate her world premiere in Mallorca and will be presented to the public for the first time at the Palma International Boat Show from April 28th to May 1st.

There are many ways to customise your BAVARIA. You now have the opportunity to see for yourself how the different woods, fabrics and colours harmonize with each other using the new BAVARIA Yacht Configurator.

BAVARIA CHINA has opened its seventh sales office in China directly in the Clearwater Bay Marina in Hainan. At the same time, three BAVARIA yachts were awarded the coveted Oceanway China Yacht Awards.

34 finalists were nominated for the 2022 Motor Boat Awards by the renowned British Motor Boat & Yachting magazine. But the jury's decision was clear: In the category of sportscruisers up to 45 feet, the BAVARIA SR41 is the Motor Boat of the Year.

The BAVARIA SR41 has been nominated for Motor Boat of the Year 2022 in the sportscruisers up to 45 ft category at the UK Motor Boat Awards.

BAVARIA YACHTS is adding another model to its successful SR-LINE. The BAVARIA SR36 will make its debut at the boot 2022 in January.

The BAVARIA C38 is starting off this year's exhibition season with three nominations for international awards. Which awards the C38 will be taking home, will be decided in January 2022.

Marc Diening is to succeed Michael Müller as CEO of Bavaria Yachts. The handover is planned for August 1st. Müller took on management of Bavaria Yachts in 2019 and will now be moving to the advisory board.

"And the Winner is …" was the motto for the BAVARIA C42 last Friday, January 22. She won the perhaps most important award in the yachting industry, the EUROPEAN YACHT OF THE YEAR AWARD.

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Bavaria Yachts is entering the growing motorboat market for day cruisers with outboards. The first model will go into production in the Giebelstadt yard as early as September.

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Business is running well at BAVARIA YACHTS, as summarised by the new management in Giebelstadt.

BAVARIA C-Line continues on its successful course in the USA. Now the BAVARIA C57 and C45 has been nominated for the Best Boat Award of the SAIL magazine. The winners will be announced in January.

We are celebrating two Cannes debuts with our C45 and C50 sailing yachts at the Yachting Festival between September 10th and September 15th.

The future development of Bavaria is taking clear shape: The yacht builder, respected worldwide for its good price/performance ratio, will once again build its boats one hundred percent in Germany.

A private equity fund advised by the Berlin-based investment company CMP Capital Management-Partners will acquire the entire business of Bavaria Yachtbau GmbH and continue its operations.

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Det tyske investeringsselskapet CMP Capital Management-Partners GmbH har overtatt eierskapet av Bavaria Yachtbau GmbH. Investeringsselskapet ble grunnlagt i 2000 og har bred kompetanse innen produksjon, automasjon, bilindustri og har også erfaring fra maritim virksomhet. Den nye eieren har allerede besøkt den norske importøren og viser et sterkt ønske og engasjement for et tett samarbeid med forhandlerleddet og markedet.

«-Vi er svært glade for at eierskiftet nå er gjennomført og ser fram til å videreføre det gode samarbeidet med Bavaria i Tyskland. Det siste året har det blitt utviklet mange nye spennende modeller som markedet har tatt veldig godt imot. Vi har ståltro på merket som tilbyr flotte båter tilpasset nordisk bruk og som stadig utvider sitt kundegrunnlag» sier Lars-Erik Solvang, daglig leder i Bavaria Båt Norge AS.

Pressemelding fra Bavaria Yachtbau GmbH:

Future of Bavaria Yachtbau secured

• A private equity fund advised by the German investment company CMP Capital Management-Partners will continue Bavaria Yachtbau GmbH.
• The subsidiary Bavaria Catamarans SAS is also being acquired.
• All 800 employees working in Giebelstadt, Germany and Rochefort, France will transfer to the purchaser.

A private equity fund advised by the Berlin-based investment company CMP Capital Management-Partners will acquire the entire business of Bavaria Yachtbau GmbH and continue its operations. It will also acquire all shares in French subsidiary Bavaria Catamarans SAS. All 550 employees of BAVARIA YACHTS in Giebelstadt and all 250 employees of BAVARIA CATAMARANS in Rochefort will transfer to the purchaser. A corresponding purchase contract between the management of Bavaria Yachtbau GmbH and CMP was concluded and notarized today. The creditors' committee gave its approval, as did the administrator of Bavaria Yachtbau GmbH, Dr. Hubert Ampferl. The purchase will be completed after merger control clearance by the German Federal Cartel Office, which is expected in a couple of weeks. The parties have agreed not to disclose the purchase price. CMP Capital Management-Partners is a German investment company that has specialised in the acquisition of companies in distress in Germany, Austria and Switzerland since its foundation in 2000. CMP’s private equity funds are advised by Berlin-based CMP Capital Management-Partners. With the investment in a company, CMP employees assume operative management responsibilities on site. In the case of Bavaria, Dr. Ralph Kudla, restructuring expert and partner at CMP, will join the executive board. Kai Brandes, Managing Director of CMP Capital Management-Partners explains: "We are convinced of Bavaria's global market potential and will sustainably develop the company. The restructuring measures will focus on regaining market share and improving production costs.” Restructuring expert Dr. Tobias Brinkmann, Managing Director of Bavaria Yachtbau since insolvency proceedings began in April 2018 states: "Bavaria is an outstanding company with a strong brand, compelling products and a highly dedicated team. We are pleased to have found a well-known and experienced buyer in CMP who will lead Bavaria into the future. The entire management would like to thank our employees, yacht dealers, customers and suppliers. They have all supported Bavaria Yachtbau during the insolvency proceedings. The fact that Bavaria has been able to successfully build and deliver 220 yachts during the last five months shows how committed and reliable our staff is.” Giebelstadt / Rochefort, 15 September 2018

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Side Letter: Partners Group ponders China

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How the Bavarian taxman has spooked the region’s private equity industry

Jail time, fines and increasing investigations from the local tax authority – in Germany’s largest state, the private equity industry appears to be in a state of fear when it comes to the issue of tax and offshoring.

In Munich, capital of the southeastern German state of Bavaria, a situation is playing out within the private equity industry there that has got some practitioners nothing short of spooked.

Private Equity International has been told there are at least four private markets firms under investigation on suspicion of tax evasion by omission, that is, that they fail to comply with tax filing obligations in Germany due to their offshore fund structures.

Tax disputes are hardly unheard of in the financial services world, but industry insiders tell PEI these cases are far from run of the mill. For one thing, the cases feature shifting goalposts when it comes to the interpretation and application of tax law.

For another, there have been reports of private markets firm founders spending time in the local lock-up.

Lawyers we spoke to said firms they are advising are having discussions on whether they should stay in Munich or leave.

Bavaria’s tax authority has been probing PE firms for tax evasion since 2015, focusing on their favour of low-tax foreign jurisdictions. Authorities have not said what prompted these tax investigations but one clue may lie in what’s known as the cum-ex scheme – a tax scandal in which banks and investors in Germany and other EU countries used a form of dividend arbitrage to claim multiple tax rebates for the same dividend payout. Since that scandal – the loophole was closed in 2012 – tax authorities in Germany have become much more active in their audits of international transactions, sources tell PEI . While the scandal was not related to the private equity industry, further cross-border tax fraud probes have taken place since then, the sources say.

Munich’s tax authority now appears to be taking issue with private equity’s use of offshoring. Specifically, the core issue here centres around the effective place of management of a business and the exact site of value creation. The authority claims that fund structures set up abroad are in fact managed in Germany. In these cases, the Munich tax investigation unit has been looking into whether the directors installed in a foreign jurisdiction are simply there to sign documents, while the place of management and day-to-day business decisions are made in Germany. If deemed to be so, it follows that taxes in Germany have therefore not been paid properly by the German-managed fund.

It is common for fund structures to be set up in jurisdictions that are different from where investment teams are based, a London-based partner at a global law firm tells PEI.

“That is often a function of the private capital industry being international in nature, so investment teams will be spread across a number of different jurisdictions. But it has also been a longstanding requirement to show that: the regulatory activity of advice or management is being carried out in the right jurisdiction; that the economic substance of any activity in the jurisdiction where the fund/GP/management vehicle are domiciled – eg, Luxembourg or the Channel Islands – can be clearly demonstrated.”

This means showing that investment decisions are actually made there, with senior decision-makers present at the meeting, and that there is proper remuneration for any investment advisory services from the investment team, the partner adds.

This burden often doesn’t apply to global firms and pan-European firms, PEI understands. Their ‘fly-in fly-out’ business model means decisions on multi-billion-euro or dollar deals are often done by people flying in from places such as New York or London where such firms may be headquartered, sources point out.

Mid-market in the crosshairs

PEI understands several well-known, mid-market private equity firms are engaged in discussions with Munich’s tax authority on offshore fund domicile or the legal jurisdiction in which an investment fund is incorporated and operates – a component of fund structuring that has largely been accepted in the industry over many decades.

The tax authority in Munich began investigating foreign fund structures used by German residents from 2015. The proceedings started normally also as a tax audit, while some of the cases developed into investigations. PEI understands many of these cases are still pending.

A tax assessment is either accepted by the firm or contested via a court proceeding, which usually ends in a settlement. Munich’s tax authorities appear to have taken a different direction in some cases by effectively starting criminal investigations, rather than treating them as tax audits.

With so many mid-cap private equity funds having their advisers based in Munich, this has become a huge issue for the industry, says Christian Hollenberg, founding partner at Perusa , a Bavaria-based mid-market firm.

As more LPs discover this, it could affect their appetite for German private equity structures, according to Hollenberg.

Perusa exited its latest fund’s assets in 2022 and will now shy away from launching any international private equity structures in Bavaria. “If you do that, you’re doing so with one leg in jail, the way it is now,” Hollenberg says. “That is going to be a total shift in the LP environment.”

Another Munich-headquartered fund manager says private equity firms in the state are facing an about-turn in how offshore fund structures are treated.

“It’s a really unpleasant situation,” the fund manager says. “It’s not people intentionally avoiding tax, it’s doing things by the letter of the law for 15 years and then suddenly being told [by the tax authority], ‘We’re going to review it’ with no legal justification.”

PEI understands there are about 150 investment firms based in Munich, including 85 buyout or growth firms and 75 venture capital firms.

Ascertaining ‘place of management’

Germany’s General Tax Code defines the place of management as the “centre of the business management”, that is, “where the relevant will of the management is formed and the measures of some importance necessary for the management are ordered”. The place of management is decisive, where business activities are carried out for the normal operation and day-to-day management of the business.

Germany-based private equity practitioners PEI has spoken to say they are perplexed as to why there is now uncertainty around how Munich’s tax authority is interpreting the law in terms of where value is created and who is subject to German tax filings. “Unique”, “nonsense” and “totally bizarre” are how participants have defined the situation, in discussions with PEI .

The authority’s view also appears to differ from the consensus on fund structuring around the world. Cross-border fund structures have been a component of private equity funds for decades, used to entice a diverse group of investors to commit to their funds. Another driver for utilising offshore structures is that the vehicles can be used to optimise investor participation in a fund, particularly for those that fall into tax exempt or overseas categories.

Two Germany-based lawyers PEI spoke to who are advising their clients on a number of active investigations say the situation doesn’t follow established legal principles. As one noted, it would have been much easier for all parties if they had gone into a tax dispute. As a criminal matter, the justice ministry is involved, which makes it lengthier and more complicated, the lawyer said.

To add another layer of complexity, the local tax offices operate independently and administer taxes without the supervision of Germany’s Federal Central Tax Office. The Federal office also cannot influence the outcome or take over any tax cases – this is not allowed under constitutional law, lawyers tell us.

For its part, Munich’s tax authority says it is simply carrying out its raison d’être .

“In Germany, the tax administration has the task of assessing all companies – regardless of sector – in accordance with the applicable federal law; this applies not only to the Bavarian tax administration, but to all state administrations,” a spokesperson from Bavarian state’s tax office told PEI. “Bavaria continues to work to maintain, strengthen and promote the attractive conditions of Bavaria as a business location.”

And what of the German Private Equity and Venture Capital Association? PEI understands its hands are tied and that it will not interfere in any ongoing prosecution processes. It did, however, publish a statement in mid-February calling for the introduction of a clear legal framework on tax transparency. It urged Germany’s Federal Ministry of Finance (BMF) to “act quickly” and fix tax transparency in law, arguing that the BMF should take into account the development of the fund management business and its market reality.

“This current situation leads to legal uncertainty and, in the worst case, to the absence of international investors,” the Bundesverband Beteiligungskapital (BVK) wrote. “[This is] a situation that has a lasting impact on the mobilisation of private capital to finance the challenges of transformation and inhibits growth.”

The BVK did not comment when approached for this article.

Most participants PEI has spoken to note that the lengthy investigations are likely to harm Germany as a place for private equity, where capital commitments may fail to materialise and worse, that private equity managers might leave Bavaria. Others think that it is par for the course that the authorities review fund structures in the best interests of appropriate legal taxation.

Do the lawyers have any advice for firms, at a moment when the outlook for the Bavarian private equity industry itself looks uncertain?

“First, if they want to continue operating in Munich, I will conduct a due diligence of their process to make sure they can’t really be attacked,” says one legal expert who advises concerned clients. “Second, sometimes it might be better to just leave Bavaria as this trend continues here.”

– Adam Le contributed to this report

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