American investment giant H.I.G. Capital has expanded its European footprint with two major deals in Germany and France last month.
The Miami-based firm, which manages $67bn (£52bn) in capital, is targeting established European manufacturers amid increasing transatlantic investment activity.
German engineering deal
H.I.G. has agreed to take a strategic stake in HELLER Group, a 130-year-old German machine tool manufacturer that employs more than 2,600 people globally.
The deal, announced on 4 February, will see the fourth generation of the Heller family retain significant ownership while gaining access to H.I.G.’s financial resources.
HELLER produces CNC machine tools and manufacturing systems from five production facilities across Europe, Asia, and the Americas.
“Our objective is to strengthen and expand our status as a market-leading innovator,” said Dr Thorsten Schmidt, Chief Executive of HELLER.
The German manufacturing sector has faced headwinds in recent years, with many family-owned industrial companies seeking outside investment to fund modernisation efforts.
Aerospace financing
In a separate transaction on 27 February, H.I.G.’s credit arm provided financing to French aerospace supplier CCE Group.
CCE, which produces equipment for aircraft cabins and cargo holds, was carved out of French aerospace giant Safran in 2023 and is owned by private equity firm Hivest Capital Partners.
The company manufactures airline trolleys, galley equipment and cargo containers at its facilities in France.
“With industry confidence high, we are now ready to accelerate our vision of an integrated cabin and cargo market leader,” said Klaus Hofmann, CEO of CCE Group.
The aviation industry has been recovering steadily from pandemic-era disruptions, with suppliers now investing to meet renewed demand from airlines and aircraft manufacturers.
Private equity expands in Europe
H.I.G.’s European deals reflect a broader trend of American investment firms increasing their presence across the continent.
Analysts suggest this is driven by competitive valuations compared to the US market and the availability of established manufacturing businesses seeking growth capital.
The firm employs more than 500 investment professionals across 19 offices worldwide, including European bases in London, Paris, Hamburg, Madrid, Milan and Luxembourg.
Since opening its first European office in London in 1996, H.I.G. has steadily expanded its continental operations.
“We like to support market leaders,” said Pascal Meysson, Head of H.I.G. WhiteHorse Europe, regarding the CCE investment.
The company typically invests in mid-market businesses across manufacturing, services, healthcare and technology sectors.
H.I.G. has invested in more than 400 companies worldwide since its founding in 1993, with its current portfolio including over 100 companies with combined sales exceeding $53bn (£41bn).
The firm also completed the acquisition of US-based Patriot Pickle in January, demonstrating its continued investment activity across both sides of the Atlantic.
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