Secret Investment Targets: Top German Companies on the Stealthy Radar of Investors
International investment firms are eyeing prominent German companies, particularly those with strategic market positions and attractive valuations. With the economic growth in Germany slow and the stock market, particularly medium-sized companies, experiencing low sentiment, acquisition opportunities have become more prevalent. Furthermore, the strong U.S. dollar offers an additional incentive for purchasing German companies.
Recently, participation firm CVC joined forces with major shareholder Frank Gotthardt to acquire healthcare-focused software company Compugroup, while the US investor Carlyle previously acquired a majority stake in IT company SNP. Beyond the high-tech sector, there is interest in other companies as well. Salzgitter, a steel giant, has already received a non-binding negotiating offer from major shareholder Günter Papenburg and TSR Recycling, while Mike Ashley has increased his stake in luxury fashion brand Hugo Boss to just under 30 percent via the Fraser Group. Similarly, the Berlusconi family has briefly expanded its influence in ProSiebenSat.1 just below the takeover threshold.
Less expected, temporary work and further education provider Amadeus Fire does not appear on the list of potential takeover candidates. Despite specializing in a market with strong demographic growth potential and a profitable operating margin of 13.8 percent, Active Ownership, an investment firm with a history of deals with participation firms, holds around 11.8 percent of the company. The editorial team anticipates an upside potential of up to 50 percent for Amadeus Fire.
Other companies that could draw international interest include SGL Carbon SE, Software AG, Bechtle AG, Symrise AG, Brenntag AG, Fielmann AG, and Encavis AG. These companies are strategically positioned in growth markets and possess strong brand presence, innovative products, and strategic market positions, making them attractive targets for investors. However, several factors, including market conditions, shareholder receptivity, and regulatory approvals, will impact the likelihood of a takeover.
For insights into special situations with German companies and their potential investment opportunities, small-cap expert and deputy editor-in-chief of BÖRSE ONLINE, Lars Winter, offers a stock market newsletter, the Lars Winter Report. With a proven track record of success, he leverages in-depth background knowledge, excellent contacts in the small and mid-cap scene, and a keen sense of the market to provide investors with compelling investment proposals and exclusive insights into the world of German small and mid-cap stocks. Don't miss out on these opportunities by subscribing to the Lars Winter Report weekly, available as a comprehensive PDF report, updates via email and the BÖRSE-ONLINE app.
Investment firms, such as CVC and The Carlyle Group, have shown interest in investing in German businesses, particularly in the healthcare, IT, and steel sectors. Similarly, Amadeus Fire, a company specializing in temporary work and further education, could potentially draw international interest due to its strong market position and profitable operating margin.
