Hermann Rosen, founder of ROSEN Group ("ROSEN" or the "Company"), is selling a majority stake in ROSEN to Partners Group, a leading global private markets investment manager acting on behalf of its clients. At the same time, Hermann Rosen is reinvesting in ROSEN alongside Partners Group. This was announced in mid-November.
The transaction is part of Hermann Rosen's succession planning and concludes a process that was initiated about a year ago in the interest of all stakeholders of the company. Together with his management team, Hermann Rosen had examined strategic options in order to create the conditions for the long-term success of ROSEN. With this transaction, Hermann Rosen ensures the necessary stability and at the same time the continuation of the technology-oriented strategy that has enabled ROSEN's strong organic growth. As part of this process, the company has reorganized its activities and separated ROSEN from the New Ventures.
"I have always looked at ROSEN from the perspective of a founder. This includes thinking about my succession at the right time", says Hermann Rosen, founder of ROSEN. "After an intensive review of various strategic options, I am delighted that we have found the ideal co-owner in Partners Group to continue ROSEN's unique success story in the long term. I will continue to be a member of the Board, but will follow my ever-present pioneering spirit and nature as an explorer and focus on writing the next success story outside of ROSEN with the New Ventures."
Long-term growth opportunities through new market requirements in plant engineering
The new ventures are development projects that are independent and outside of ROSEN's primary business area. Both parties have agreed not to disclose the purchase price or other financial details.
ROSEN's established business is focused on a growing global market that includes pipelines, storage tanks and process plants. With a portfolio of state-of-the-art proprietary diagnostic technology, extensive and unique data assets and industry-leading software solutions combined with integrity engineering consultancy services, the company serves a loyal blue-chip customer base in over 120 countries. Over the past 40 years, ROSEN has achieved highly profitable double-digit organic growth. Strict regulations and the increased requirements for the compliant and safe operation of new and ageing plants make ROSEN's market extremely attractive and enable further growth. At the same time, the business model generates consistent, recurring and predictable revenue. Co-CEOs Erik Cornelissen and Holger Hennerkes, who have been responsible for ROSEN's global operating business for many years, will continue to manage the company together.
Partners Group will work closely with management to leverage ROSEN's capabilities to expand into new areas and adjacent markets, including future energy sources, including new opportunities in the energy transition, such as hydrogen pipelines. Key value creation initiatives include continued investment in technology innovation, research & development and other investments; further utilisation of automation and artificial intelligence to drive data analytics; and the introduction of initiatives to drive operational excellence.
Completion of the transaction is subject to regulatory approvals and other customary closing conditions. The transaction is expected to close in the first half of 2024.
