GEVEKE ELECTRONICS, THE MBO THAT WORKED
A little firm which almost didn't make it is now marketing its equity around the world, thanks to one Dutch bank which had the courage to break with tradition.
Geveke Electronics, which makes building control and data handling systems and provides computer maintenances services, is now valued at Dfl284 million ($123 million). In September 1983, when it split from the Dutch combine SHV in a management buy-out, it was worth only Dfl10 million ($4.4 million).
In the most recent update of the Dutch top 500 companies Geveke was number 44. "They have a very smart strategy. Now they are positioned right at the top of their market,' said Bill Coleman, electronics analyst at the London stockbroker James Capel. "And their market is going to mushroom. We are predicting that Geveke's earnings will grow 60% this year, 40% next year and 30% the year after, and I think those estimates are conservative.'
The man behind the growth is Geveke's vibrant managing director, Anton Risseeuw, a former executive with SHV. But when he first hatched the idea of a buy out in 1981, the venture very nearly did not get off the ground.