N&Q: Family office deals; smooth succession at leading German Mittelstand

Canadian family offices busy themselves with deals

Serruya Private Equity, a family office controlled by the Serruya family, who own a frozen yoghurt business, has invested in Hydrofarm, a US wholesaler and manufacturer of hydroponics equipment and horticultural products. The family office co-invested with Broadband Capital Investment, a boutique investment bank, and Hawthorn Equity Partners, a private equity firm. The terms of the investment weren’t disclosed.

Another Canadian family office called SeaFort Capital, which is backed by two of Canada’s best-known retail and food family dynasties, the Sobey and McCain families, is building a sizable oil equipment business through acquisitions, according to a local press report. SeaFort Capital is looking for companies in the equipment rental, manufacturing, distribution, and business services sectors, which have a minimum of $2 million and a maximum of $15 million in earnings before interest, tax, depreciation and amortization, said the report. The sweet spot for most direct private investors

 

Smooth German succession

A good case study in smooth succession was recently observed at a classic German Mittelstand, the Stuttgart-based Lapp Group. The 60-year-old cable technology group has appointed third generation Matthias Lapp as the new CEO. He replaces his uncle, Andreas Lapp, who has become chairman of the supervisory board of Lapp, who in turn, replaces his mother Ursula Ida Lapp. She founded the business along with her husband, Oskar, in 1957. Ursula now becomes honorary chairman of the supervisory board of the family business.