Oversubscribed IPO sets equity market capitalization at EUR 778 million and raises EUR 416 million
NEW YORK, June 29, 2021 — Partners, LP (“Argand”), the New York- and San Francisco Bay Area-based industrials private equity firm, today announced that its portfolio company, Cherry AG (“Cherry” or “the Company”), the world’s leading global designer and manufacturer of high-precision keyboard PC gaming mechanical switch technology, has successfully completed its IPO on the Frankfurt Stock Exchange. Hauser Private Equity invested directly in Cherry along with investing through its partnership with Argand Equity’s fund.
At the final offer price of EUR 32 per share, the total volume of the IPO was significantly oversubscribed. Cherry’s 24,300,000 shares began trading this morning, June 29, 2021, under the ticker C3RY on the regulated market (Prime Standard) of the Frankfurt Stock Exchange (Frankfurter Wertpapierbörse).
The total number of shares and the final offer price corresponds to a market capitalization of approximately EUR 778 million. The total volume of primary and secondary shares placed in the IPO amounts to approximately EUR 416 million.
The Company’s gross proceeds from the placement of the 4,300,000 new shares amounts to EUR 138 million. Cherry intends to use the net proceeds from the IPO to (i) fuel organic growth, in particular to advance and expand Cherry’s position as a global brand and innovation leader, (ii) drive inorganic growth through selective acquisitions, and (iii) repay certain outstanding debt in connection with a refinancing of existing debt.
Heather Faust, Managing Partner at Argand, commented, “We are thrilled to support this significant milestone in Cherry’s history, and realize significant value for our investors. Cherry is a world-class company and well positioned to advance and expand its position as a global brand and innovation leader. We are delighted by the strong institutional shareholder support the company received, and the extremely positive feedback from investors throughout the process. We look forward to continuing to support Cherry’s management team as they pursue further organic and inorganic growth.”
About Argand Partners
Argand Partners is a New York and San Francisco Bay Area-based middle-market private equity firm that targets market-leading industrial companies with under-resourced and unrealized global growth potential. Argand companies have strong market share, sustainable competitive advantages, defensive characteristics, and significant growth potential supported by secular demand trends. The firm focuses on specialty manufacturing and business services companies with a strong U.S. nexus (headquarters, primary growth market, or majority of revenue) and often significant global operations or expansion opportunities.
Argand is a growth-oriented control investor that seeks complex, often contrarian, situations in order to buy well. The team employs a hands-on approach to partnering with management to create value across the investment lifecycle and help portfolio companies achieve their full potential as world-class, industry-leading companies.
Further information on Argand can be found on the website: www.argandequity.com
Cherry AG, headquartered in Auerbach in der Oberpfalz, Germany, is the world’s leading manufacturer of premium mechanical switches for the PC gaming keyboard market. Cherry is also a leading global manufacturer of computer input devices with a focus on the Gaming, Office, Industry, Security and Healthcare markets. Cherry employs approximately 500 people in production plants and corporate branches in Germany, France, UK, China, Austria and the USA. Founded in 1953, the Cherry brand is synonymous with “German-quality” products that are designed and developed specifically for the needs of its customers. In December 2019, the company opened a new headquarters and manufacturing facility in Auerbach, Germany, reflecting Cherry’s new values of ‘Workplace of the Future’ and ‘New Work’. Cherry brings high quality, passion and design to the world of work, addressing end customers and companies alike who demand high performance, durability and functionality from their computer input devices.
Further information on Cherry can be found on the website: www.cherry-world.com