14 June 2018

Business area expansion: WEMAS Group acquires Gerding Verkehrstechnik

The Gütersloh based WEMAS Holding GmbH, one of the leading German suppliers of integrated, certified solutions for road safety technology, acquired Gerding GmbH Verkehrstechnik based in Senden. An agreement for the acquisition of all shares was reached with the managing director and previous owner, Thomas Gerding. With its new subsidiary, WEMAS is strategically expanding its product and service portfolio both into the adjacent business area of mobile, active traffic safety as well as into stationary traffic engineering. The two holding companies Gimv and Paragon, which together are majority owners of WEMAS in equal parts, are actively supporting their portfolio company in its further growth through the acquisition.

WEMAS Absperrtechnik GmbH (www.wemas.de) was established in 1971 and has grown into a full-range provider of certified passive mobile road safety equipment, including protective barriers, delineators, base plates, warning lamps and traffic cones. The company supplies both wholesalers and roadwork safety service providers serving the road safety, infrastructure and construction markets, predominantly in Germany.

Gerding GmbH Verkehrstechnik has been a nationwide specialist supplier of road equipment for 28 years and is now active in two business segments. The range of services in the field of signposts and signage installation includes project planning and construction management as well as all necessary construction work to erect gantries and traffic signs throughout Germany. In the field of intelligent traffic technology, the in-house developed traffic warning systems, LED panels and mobile telematics, are configured individually on-site. Delivery and assembly are part of the services as round-the-clock service seven days a week is.

“With Gerding GmbH, which has excellent customer relations, including numerous public authorities, we are adding new products, sales channels and regions to our business,” WEMAS Managing Director Markus Schwinn explains. “Our company is on the way to become a comprehensive provider of traffic safety technology, and we are pleased to have taken an important step in this direction with the help of our investors Gimv and Paragon.” Thomas Gerding, who also acquired shares in WEMAS, will lead the new business field of active traffic safety systems in the future.

“This first add-on acquisition is an important milestone for WEMAS. In the future, the company will be able to participate even more strongly in the growth of the traffic safety market, which is characterized by increasing investments in road infrastructure and increasing traffic volumes,” Sven Oleownik said, Head of Investment Activities at Gimv in Germany. “The sales channels and geographical focus of both companies complement each other ideally. At the same time, Gerding’s know-how will enable WEMAS to initiate further product innovations in the mobile transport technology sector.”

“With the acquisition of Gerding, WEMAS has laid the foundation for future growth in the field of active traffic technology,” Edin Hadzic explains, managing partner at Paragon. “Gerding’s great technical development and production competence will also be an advantage for WEMAS in the launch of further active traffic safety products”.

The acquisition takes place only a few months after the acquisition of the majority shares of WEMAS by the investment companies Gimv and Paragon last October, which thus further accelerates the growth of their portfolio company. Sales recently increased from 34 million (2016) to almost 39 million euros at the end of last year. The joint strategy of the investors and the minority shareholding management team envisages not only expansion of WEMAS’ core business in Germany, but also the penetration of adjacent markets for road safety and a further expansion of the international business.

About WEMAS:
WEMAS is the market leader in Germany for integrated, certified solutions of road barrier technology. Strategic business fields comprise intelligent traffic guidance systems/guidance, traffic signposting, construction site and workplace safety.

About Paragon
Paragon is one of the leading independent private equity firms in Europe with approx. €650 million of equity under management. Paragon works closely with portfolio companies to achieve sustainable growth and operational excellence. The investment portfolio covers various industries and currently comprises 9 companies. Paragon was founded in 2004 and is based in Munich, Germany. For further information please refer to www.paragon.de.