Annual Report
2013/2014
DRIVING
EXPANSION.
ENSURING
CONTINUITY.
MAKING STRONG
COMPANIES STRONGER.

Romaco GmbH

Romaco

MACHINES AND PLANTS FOR PACKAGING TECHNOLOGY

Romaco is a leading global supplier of processing and packaging technology. Divided into two business areas, “Tableting” and “Packaging”, the company develops system solutions for the pharmaceutical, cosmetics, food and chemical industries. Romaco focuses on serving the technically sophisticated segment of flexible machinery, which benefits from the strong global growth of generic drug manufacturers. The company’s product range includes primary and secondary packaging, sterile liquid and powder filling solutions, as well as tablet compression technology.

By investing in Romaco, DBAG is participating in one of the most attractive and strongly growing segments of Germany’s mechanical engineering sector. Romaco benefits from the growth drivers in the pharmaceutical market – a growing global population, an aging population in industrialised nations and rising prosperity in emerging countries. The countless machines that the company has delivered worldwide in the past provide an excellent basis for establishing a stable service business.

POTENTIAL FOR DEVELOPMENT

The strategic goal is to develop Romaco into a so-called full liner in the group’s key area of tablet production and packaging. This will enable the company to offer its customers integrated system solutions for the entire tablet production process. By investing in its sales organisation, Romaco aims to improve its regional market coverage. In addition, it plans to expand its service business.

In 2013/14, DBAG and DBAG Fund V provided funding to help Romaco take the first key steps towards fulfilling its development potential and implementing its strategic goals. With the acquisition of IMA Kilian in November 2013, the company gained another important process step in tablet production. On the other hand, in October 2014 Romaco sold its group company FrymaKoruma, a manufacturer of machines for food production, to Stephan Machinery (“ProXES”), another company in our portfolio. The revenues generated by this disposal will go towards further implementing the full-liner strategy, among others.

2013/14 FINANCIAL YEAR

In the first half of the 2013/14 financial year (31 October), Romaco suffered from its customers’ reluctance to invest, especially in emerging countries that are key to the company’s business. In these countries, political uncertainty and the resulting devaluation of the currency resulted in an unfavourable climate for investment and in orders being postponed in the business for new machinery. Revenues and earnings in the second half of 2013/14 were therefore below expectations and down on the previous year’s values on a comparable basis, despite a clear turnaround. Sales and the services business were enhanced.

OUTLOOK AND OBJECTIVES

Romaco is continuing to focus on acquiring companies to complete its range of machines. Given a considerable improvement in the order situation more recently, the company started the 2014/15 financial year with a larger order backlog, which is expected to yield higher revenues and earnings.

€ 11.2mn

INVESTMENT OF DBAG

77.3%

SHARE OF DBAG FUND V

MBO

TYPE OF INVESTMENT

18.7%

SHARE OF DBAG

APRIL 2011

INITIAL INVESTMENT

450

EMPLOYEES

REVENUES in €mnRevenues Romaco GmbH

1 Including the acquisition of IMA Kilian in 2013 but excluding the disposal of FrymaKoruma in 2014
Karlsruhe (Germany) / www.romaco.com