KRAFT & BAUER HOLDING GMBH

Kraft & Bauer GmbH (Kraft & Bauer) develops, produces and installs fire extinguishing systems for around 800 different types of tooling machines. The focus is on extinguishing systems controlled by microprocessors that detect fires and initiate the extinguishing process using sensors. The fire extinguishing systems are either installed directly into the machine by Kraft & Bauer employees or are sold as a kit to the machine manufacturer. In addition to its headquarters in Holzgerlingen (Baden-Württemberg, Germany), Kraft & Bauer operates a site in Bannwil (Switzerland) and 13 other service locations in Germany, Switzerland and Italy. Kraft & Bauer’s systems are used in machines that show an increased fire risk, such as millers, lathes and grinders that work with particularly high levels of precision and speed. Demand for these high-performance machines – and, as a result, for corresponding fire extinguishing systems – is rising. In addition, Kraft & Bauer benefits from a steadily growing service business with a broad installed base of more than 30,000 systems in Germany alone. The fire extinguishing systems must be regularly inspected and maintained. Kraft & Bauer’s sales activities are currently concentrated in Germany, Austria, Switzerland and Italy. The company is aiming to expand its business with existing clients in these markets – both on the basis of the rising demand for fire extinguishing systems for new machines and by retrofitting older machine tools. In addition, Kraft & Bauer plans to attract new clients and push ahead with the company’s international expansion beyond the markets in which it is currently active. The favourable market environment supported the continued positive development of revenues and EBITDA in 2019 with high single digits growth rates. The management continues to focus on the recruiting and training of technicians, since the availability of qualified personnel is currently limiting the expansion rate to some extent. Favourable trends towards machine automation and unsupervised operation as well as an increasing share of oil-cooled tooling machines bear potential for future growth. However, the order intake in the current OEM machine tool market may see a short-term softness in 2020. In the mid-term, Kraft & Bauer’s largest potential lies in the internationalisation of the business, especially the expansion to China and North America.