Halder | Ownership Succession and Growth for MidCaps

Halder | Ownership Succession and Growth for MidCaps

Erich Jaeger GmbH

Medical diagnostic systems
€37 million (1999)
1994, MBO/MBI

Erich Jaeger started the company as a wholesaling firm for respiratory equipment in 1949 and soon began manufacturing of his own diagnostics equipment. The 1970s saw a transition to computer-aided data acquisition and analysis using proprietary software embedded in an MS-Windows environment. Following substantial R&D investment, takeovers and rapid expansion of the product range, Jaeger became a European market leader for diagnostic systems in cardiology, neurology and pneumology.

Early in the 1990s, the company was held by the third generation of the Jaeger family which was no longer active in management. It was facing several challenges: Ownership succession, management development and declining margins caused by cost pressures in the German healthcare system.

Halder organized an MBO/MBI, taking a 62% stake. The balance was held by the management team which included a new financial director introduced by Halder who quickly reorganizing Jaeger’s financial and corporate structures. Stronger management and infrastructure combined with successful marketing initiatives returned the company to good profitability as it repositioned itself to provide productivity tools for medical diagnostics.

The exit was facilitated by an organized auction, resulting in a trade sale to a strategic buyer from the USA interested in strengthening his market position in Europe and gaining access to Jaeger’s state-of-the-art product range.

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Halder Investment Advisors included

Halder Advisory Board Members included

  • Paul Deiters