Klenk Holz acquired by investment firm

The announcement, by Carlyle’s London office, brings an end to Klenk’s search for new investors during a period of restructuring while under bank control.

The Carlyle Group is one of the world’s top company turnaround specialists.

“Klenk has a firm footprint in the European building materials market, combining strong management expertise with a wide distribution network and well-located manufacturing,” said Ian Jackson, managing director of Carlyle Strategic Partners.

“Klenk is ideally placed to benefit from the growth in a number of European and international economies, and we look forward to working with management to improve growth and create value.”

Klenk Holz CEO Günter Hegemann said Carlyle’s strong track record in turning around companies gave Klenk “great confidence” for the future.

“After a challenging period for the entire building materials industry, having Carlyle on board will ensure the business is equipped for the next phase,” he said.

Klenk, like several large German exporting mills of volume softwood, has suffered in the past few years from poor demand and high raw material costs but reported a good financial performance in the first four months of 2013, with production rates increasing slightly over a year ago.

Klenk has three mills at Oberrot, Baruth and Wolfegg and manufactures sawn timber, edge-glued panels, laminated wood, formwork beams and DIY timber products. Its exports represent 40% of production.

It is currently listed on The Sawmill Database as Germany’s third largest sawmiller with a sawn production of 1.26 million m3, with only Rettenmeier and Ante-Holz bigger producers.