Bain sails with Bavaria Yachtbau

Buyout shop Bain Capital LLC''s Munich arm, Bain Capital Beteiligungsberatung GmbH, will buy Germany''s biggest yacht builder, Bavaria Yachtbau GmbH, from its founder and managing director Winfried Herrmann in a deal valuing the company at slightly over €1 billion.

Bavaria-Yachtbau''s German shipyard, located at the Northern tip of Bavaria and located (as it says on its North American website) "nowhere near the water". The yard is considered highly efficient and being nowhere near the water also helps it cut costs.
In the year to July 2006, it produced about 3,500 yachts, generating sales of about €271 million.

The deal enjoys the backing of the company''s shareholders Elfriede Herrmann and yacht distribution business Yachtagentur Josef Meltl Beteiligungs GmbH, which will continue as one of Bavaria Yacht''s main dealers.

Bain, an old hand at sports and leisure sector investments, with previous experience in Germany, where it has owned stakes in outdoor clothing producer Jack Wolfskin and chemicals distributor Brenntag Holding GmbH, plans to expand Bavaria Yachtbau''s international dealer network and open up new markets overseas.

Bain will retain the senior managers and bolster the management team over the next few months.