MUNICH—Funds managed by Equistone Partners Europe have agreed to sell a majority stake in tire-cord-cutting machine maker Karl Eugen Fischer, the private equity firm said June 12.
The deal involves Equistone, which acquired Karl Eugen Fischer in August 2013, selling its stake to DBAG Fund VII, managed by Deutsche Beteiligungs A.G.
Management will retain a shareholding in the company, added Equistone, thought it said financial terms of the deal were not being disclosed.
Founded in 1940 in Burgkunstadt, Germany, Karl Eugen Fischer manufactures cord-cutting machines for the global tire industry.
The company began developing cutting and pressing machines in 1949 and has produced tire-cord-cutting machines since the mid-1970s.
"With a market share of 70 percent, the company is the world leader in this segment, and supplies the majority of the market's leading tire manufacturers," Equistone said.
As well as its sole production site and head office in Burgkunstadt, Karl Eugen Fischer has a sales and servicing office in the U.S.
Since its investment in 2013, Equistone said it has supported the expansion of Karl Eugen Fischer's workforce in Burgkunstadt, which has grown from 490 to around 550 employees.
"Since Equistone's investment in 2013, the functionality of the machinery has improved and there has been a steady increase in its level of automation," said Marc Arens, a partner at Equistone.
The company also has extended its servicing business and broadened its international customer base, he added.
"We are confident that Deutsche Beteiligungs A.G. is the right partner for Karl Eugen Fischer to ensure its continued success going forward," Arens said.