Equistone Partners Europe has exited tyre-making machinery manufacturer Karl Eugen Fischer as part of a management buyout supported by Deutsche Beteiligungs AG (DBAG).

Germany-based Karl Eugen Fischer develops and manufactures chord cutting machines used in the making of tires. The company is headquartered in Burgkunstadt and has service sites in the US and China.

Equistone backed the business in August 2013, and has grown its workforce from 490 to around 550 across its hold. Karl Eugen Fischer generated revenues of €83m last year.

Equistone partner Marc Arens said: “Since Equistone’s investment in 2013, the functionality of the machinery has improved and there has been a steady increase in its level of automation.

“The company has also successfully extended its servicing business and broadened its customer base with internationally renowned companies,” he added.

DBAG Fund VII has bought the business from Equistone with management also taking a stake. The investment marks the fourth MBO backed by DBAG Fund VII, which closed at €1bn in 2016.

Commenting on the transaction, DBAG management board member Rolf Scheffels said: “With our experience and our focus on investments in mid-market companies, we are the company’s ideal partner. Given the investment plans of tyre manufacturers and market trends, we believe that Karl Eugen Fischer offers further potential.”