19 December 2019
ECM-managed fund acquires majority stake in SIS GmbH
- Leading service provider in the field of environmental technology for reducing emissions from volatile hydrocarbons in the oil and gas industry plans to continue its growth trajectory with a strong partner
- Investment in further developing the business with a focus on expanding the management and sales structures in order to unlock new growth potential in other international markets and verticals
- The company founder will retain a stake in SIS and guide the “hidden champion” into its next phase of development
German Equity Partners V (‘GEP V’ or the ‘Fund’), a fund managed by independent German investment company ECM Equity Capital Management GmbH (‘ECM’), has acquired a majority stake in the environmental technology service provider SIS GmbH (‘SIS’). SIS specialises in thermal waste gas treatment and degassing and is internationally leading in the reduction of emissions from volatile hydrocarbons in the oil and gas industry using mobile combustion units. Together with ECM, the company plans to invest in the further development and expansion of its management and sales structures in order to realise the full potential of the solutions provided by SIS in its existing core markets in the oil and gas industry and to open up new opportunities in other international markets and verticals. Company founder Guido Soyk will retain a significant stake in SIS and lead the company into its next phase of development in his role as managing partner. In the course of the transaction, Sales Director, Martin van der Veen, has been appointed as the second member of the management board. The parties have agreed not to disclose further details of the transaction.
Environmental technology enhancing both occupational safety and climate protection
Based in Amelinghausen, SIS was founded in 2008 with the aim of improving occupational safety when cleaning process plants and tanks. To this end, and for temporary backup when required by customers, the company uses specially developed mobile and flexible vapour combustion units, which help to prevent emissions of highly inflammable volatile hydrocarbons that are harmful to both human health and the environment. The mobile vapour combustion units well as complementary equipment are supplied to customers in shifts operated by qualified employees of SIS on-site as part of a fully-integrated and comprehensive package of services and solutions. Over the past five years, the ever stricter emissions regulations in force as a result of the ongoing development of environmental and climate policies have become an important driver of the company’s growth. SIS customers include globally leading companies in the oil, gas and chemical industries, such as BASF, BP, Exxon Mobil, Dow Chemical, Sabic, Shell and Total.
Realising growth opportunities in the core market and making SIS solutions accessible to the chemical industry and shipping with ECM as an experienced partner
In Germany and the Netherlands, SIS currently occupies a leading market share in its core industry – the European refinery industry – where the company still sees considerable potential for further growth. There are also growth opportunities for the solutions supplied by SIS in France and Spain as well as other countries in Western Europe. Another potentially sizeable target market is the European chemical industry, where SIS already has excellent reference customers in BASF and Dow Chemical. In addition, the demand for SIS solutions is also growing in the shipping industry. In the 15 largest sea ports in Europe as well as numerous inland ports, large quantities of products are transported that emit volatile hydrocarbons. With reference projects in the ports of Rotterdam, Wilhelmshaven and Bilbao, SIS is well positioned for further growth in this sector.
ECM has extensive experience in supporting growth and internationalisation strategies with medium-sized companies, which has been demonstrated in several investments accross different industries. In partnership with ECM, SIS wants to expand the existing management and sales structures and complete the development from an owner-managed business to a management-run company. The shared aim is to consistently seize the growth opportunities of the company by broadening its market approach in the future and pursuing targeted expansion in industries and countries that have not been sufficiently exploited to date. In addition to its strategic expertise, ECM is also contributing its established network to the partnership.
Guido Soyk, founder and managing director of SIS, commented: ”We are proud of the fact that we have been able to develop SIS into the leading company in a very interesting and ever more relevant niche for the reduction of emissions from volatile hydrocarbons. In order to fully realise further growth potential for our solutions, we sought a partner that suited our identity as a medium-sized company, but also had a proven track record of successfully helping ‘hidden champions’ such as SIS to take the next step in its development. We are looking forward to opening a new chapter in the history of SIS in conjunction with ECM.“
Alexander Schönborn, Investment Director at ECM, added: ”SIS not only has an impressive range of products and services, but also an outstanding market position. Demand for SIS’ solutions will continue to rise in light of climate change and ever stricter regulation of harmful emissions. Growing beyond a certain size and the core market is oftentimes a challenge for mid-sized owner-managed businesses. As a growth partner to the Mittelstand, we have successfully supported this process on many occasions and are pleased to accompany SIS on this journey with our experience and our industry network.”
GEP V was advised on this transaction by Milbank (legal and structuring), Androschin & Partner (market due diligence), Ebner Stolz (finance and taxation) and Willis (insurance). Alexander Schönborn, Florian Kähler and Christoph Demers are responsible for the transaction at ECM. SIS was advised on the transaction by CFC Corporate Finance Contor and Dr. Thomas Bister (M&A and legal).
About SIS GmbH
SIS, based in Amelinghausen, is the global market leader in the operation of mobile thermal waste gas treatment systems and complementary equipment. The services and technologies supplied by SIS play a key role for customers in reducing emissions (especially volatile hydrocarbons). SIS helps them to comply with even the strictest environmental regulations. The portfolio of mobile systems for reducing emissions in unique on the market in terms of size as well as quality and safety standards.
Further information: www.s-i-s.com
On behalf of ECM and SIS:
Charles Barker Corporate Communications GmbH
Georg Schattney, Kornelia Spodzieja, Phone +4969 794090-44