We focus on the needs of our customers
Peter Schmelzer
Managing Director
2020–present
Managing Director,FMC IndustrialBremen, Germany
2010–2020
Managing Partner,Heitkamp & Thumann GroupDüsseldorf, Germany
2005–2010
Managing PartnerFMC ConsultantsDüsseldorf, Germany
1998–2005
Commercial Director Corus Special Strip (now part of Tata Steel)Düsseldorf, Germany
In the interview, Peter Schmelzer gives us an overview of FMC Industrial’s portfolio.
As one of the three managing directors of FMC Industrial, you undoubtedly have plenty of things to say about the company. Tell us a little more about its culture.
Of course, I’ll be glad to do so. We are a subsidiary of FMC Beteiligungs KG. FMC Industrial is an investment company with a long-term focus. It acquires companies or majority stakes of companies. In our portfolio companies, we always put customer needs first. Our aim is also to create a strategic road map for our subsidiaries that is geared toward long-term objectives. We help companies to develop their own strategies and provide intensive support when implementing them. As a general rule, we involve the management in our subsidiaries.
What defines you as an investor?
We get actively involved in the management side of things. In doing so, we endeavor to understand the processes in order to identify opportunities for optimization and implement them in conjunction with the respective organization. We always want to get an understanding of the company from the inside. This particularly includes gaining the trust of all employees and involving them in development and optimization processes.
How does FMC Industrial approach company acquisitions? What do you focus on here?
We are primarily interested in industrial manufacturing companies, preferably companies involved in serial volume manufacturing. The FMC Industrial team has a wealth of experience in large-scale manufacturing. In addition, we always maintain a long-term business relationship with our customers. Our focus is on the supply sector. We build a portfolio with the intention of keeping it before further developing it.
When does a company that may potentially be acquired become attractive to you?
We look for certain differentiating features. We have considerable interest in the steady growth of the companies, combined with a long-term increase in value. We also like getting involved in profitable supply chains. Furthermore, we strive to achieve a relevant market position in the market segments we occupy.
Can you tell us a little more about the target groups you focus on when making initial investment approaches?
We have a few different focal areas. On the one hand, we are very interested in making contact with owners who want to sell their entire company. Moreover, we are looking for divisions of larger corporations that are no longer considered part of their core activities. We like to buy them by way of so-called carve-outs. We also have a strong restructuring background and are not afraid of acquiring companies in or out of crisis situations. In such cases, we are always communicating with insolvency administrators, crisis consultants, and M&A advisors.
Are there also companies that you specifically approach yourself?
Our contact with potential takeover candidates is not driven by chance, but is based on the investment criteria we have defined. We are looking for interesting companies that are a good fit in terms of content and have a sustainable business model. The company’s market position and the attractiveness of the respective market segment are of crucial importance to us.
It is clear that FMC Industrial is focused on partnership-based cooperation, long-term objectives, and growth. How is FMC Industrial financed?
We are largely self-financed. This sets us apart from traditional private equity companies, which focus on an exit of the portfolio companies through fund-based financing. The financing of our portfolio is heavily supported by FMC Beteiligungs KG.
What key questions are you addressing within your company?
What kind of portfolio will we build up in the next few years? What is the most sensible way of organically complementing this portfolio through further acquisitions? How do we strategically develop the portfolio companies? And finally: How do we secure long-term, financial success?
4 facts about FMC Industrial
Self-financed
As a privately owned Group of Companies, our aim is to diversify and expand our portfolio over the long term in order to establish a solid foundation for sustainable growth.
For the long term
The profits we generate are reinvested back into the company. We want to use our financial resources specifically to ensure consistent growth and continuous value enhancement.
Future oriented
FMC Industrial is characterized by a long-term investment strategy where we invest in our companies without pursuing exit strategies. We are building long-lasting partnerships.
Entrepreneurial
At the heart of our business success is progress based on innovation. We actively support our portfolio companies in order to hold onto them. Our aim is to create enduring value and find sustainable solutions to the challenges of today and tomorrow.
At FMC Industrial,we work as a teamand are agile.
Christian Diemer, Managing Director
We recognize a company’s value, even if the current situation is challenging
Our mission is to create values that go beyond purely economic aspects and live by them. Our independence gives us the freedom to make bold decisions and pursue long-term strategies based on our goals and beliefs.
Integrity, trust and respect are essential values on which we build our cooperation. The strength of our team lies in its diversity. We believe that a diverse group of talented people with different backgrounds and perspectives produce the best solutions.
Peter Schmelzer
Managing Director
Christian Diemer
Managing Director
Boris Siegenthaler
Managing Director
