The Hager Group is a large, privately held company focused on electrical installation systems and solutions. Determining who owns and controls such a major corporation can be difficult given the often complex ownership structures of private companies. In this article, we’ll take a close look at the ownership, leadership, and corporate structure of Hager Group to better understand who holds the reins of this influential firm.
Overview of Hager Group
Hager Group is a German manufacturing company specializing in electrical installation technology. The company produces a wide range of products including switches, sockets, distribution boards, cable management systems, surge protection devices, KNX home and building control systems, security systems, and more. Hager operates over 40 subsidiaries across Europe, the Middle East, Africa and Asia-Pacific. The company employs approximately 11,500 people worldwide and generates annual revenues over $2.5 billion. Hager products and solutions are used extensively in residential, commercial and industrial settings.
Hager Group was originally founded in 1955 by Hermann Hager in Obernai, France. It steadily grew over the decades both organically and through acquisitions. Today, Hager is one of the leading providers of electrical installations systems worldwide. It’s products and solutions are found in homes, offices, data centers, retail spaces, hospitals, infrastructure facilities and more. The company has a strong focus on innovation and develops intelligent, sustainable solutions for the electrical installations market.
Ownership Structure of Hager Group
Hager Group is owned primarily by four branches of the founding Hager family through a holding company called Hager Holding GmbH & Co. KG:
- Daniel Hager
- Pierre Hager
- Philippe Hager
- Nicolas Hager
Daniel, Pierre, Philippe and Nicolas Hager are all descendants of Hager Group’s original founder Hermann Hager. Together, the four family branches own the majority of the company through Hager Holding GmbH & Co. KG. Hermann Hager transferred shares of the company to his sons, who in turn transferred shares to their descendants over the generations. This has resulted in the ownership being divided between the four branches of the Hager family presently.
In addition to the majority ownership by the four Hager families, there is also reportedly some minor non-family ownership in the company in the single digit percentages. However, the specific details regarding any minority shareholders are not publicly disclosed. The Hager family holdings remain the dominant force in the ownership structure.
The ownership structure is centralized under the Germany-based holding company Hager Holding GmbH & Co. KG which has been described as the “parent” company of the Hager Group. Under this umbrella, Hager has dozens of subsidiaries operating in countries around the world that are wholly owned by the central Hager Holding firm.
Leadership of Hager Group
While ownership of Hager Group remains concentrated within the Hager family, the company is run by professional outside managers appointed to leadership roles:
- Daniel Hager – Chairman of the Supervisory Board
- Ralph Ennemoser – CEO
- Christophe Hager – Executive Board Member
- Dr. Rainer Verhoeven – Chief Financial Officer
- Thomas Moser – Chief Technical Officer
- Carsten Krumm – Chief Digital Officer
The Supervisory Board, led by Daniel Hager, oversees the leadership team and makes strategic decisions for the company. Daniel previously served as CEO before transitioning to the Chairman role in 2022. However, day-to-day operations are handled by the outside executives appointed to manage the company such as CEO Ralph Ennemoser. This represents a shift as earlier in Hager’s history, family members typically held the top executive roles.
The current model divides leadership between Hager family oversight and strategic direction via the Supervisory Board and outside expert professionals managing daily business activities. Many major family-owned corporations follow a similar structure to balance family stewardship with professional management. This blending of family and non-family leadership has become common practice.
Corporate Culture & Values
Despite having outside leadership, Hager Group remains committed to its roots as a family-owned company. The company emphasizes its familial culture and values as one of its distinguishing strengths. This is exemplified through five core values that guide Hager’s business approach:
Together
Hager stresses collaboration, teamwork and connectivity as underpinning its collective effort. This reflects its origins as a family company and emphasis on people being part of the broader Hager system.
Trust
Trust is described as the “basis of all relationships” at Hager. Maintaining trust with customers, employees, and partners is seen as an essential component.
Ownership
Hager wants its employees to display personal initiative, entrepreneurship and a sense of ownership. This relates back to Hermann Hager originally founding the company himself.
Openness
Open communication and transparency are touted as critical elements of Hager’s culture. The company sees this as enabling collaboration and creativity.
Enthusiasm
Passion and showing initiative are strongly encouraged within the Hager work environment and thought to be contagious.
Hager believes its family-oriented culture and core values are key factors in its success. The emphasis on “togetherness” and collaboration aims to foster a cooperative, humanistic work environment. The family connection remains a central aspect of how Hager Group views itself and its culture.
Financial Position & Performance
Hager Group has achieved steady financial expansion and success under family ownership and leadership over the decades. Some key metrics demonstrating Hager’s growth and profitability:
- Annual revenues increased from 1 billion Euros in 2003 to over 2.5 billion Euros in 2022.
- Over 40 acquisitions completed since 1994.
- Doubled global workforce between 1994 and 2022 to over 11,500 employees.
- Maintained consistent profitability and EPS growth for shareholders.
The company has been able to leverage its family-owned structure to take a long-term outlook and make strategic decisions not always possible for publicly-traded companies. Hager has expanded methodically through acquisitions and avoided over-leveraging itself with debt. The company took on some debt to finance expansion but seemingly maintained a conservative balance sheet. This has allowed Hager to self-fund steady growth over multiple decades and navigate market fluctuations.
An analysis of Hager’s financial status indicates disciplined management that has built up the company while providing long-term value creation for shareholders. The owners have realized excellent returns from Hager’s success while keeping the business financially healthy. This reflects positively on the Hager family’s strategy and oversight as owners.
Competitive Positioning & Market Share
Hager occupies a leading competitive position within the global market for electrical installations technology and smart building systems. Key indications of Hager’s strong industry standing:
- Among top 3 companies worldwide in electrical installation technology.
- Market share leader in multiple European countries including Germany, France, Poland, and the Netherlands.
- Estimated to have around 16% market share in Europe overall.
- Among the top providers of KNX building automation systems globally with over 400,000 installed systems.
The company is viewed as a premier “one-stop shop” for complete electrical installation solutions. Hager’s products have reputation for high quality, reliability and technological innovation. The company has successfully positioned itself as a leader in the ongoing industry transition towards smart building systems and the “Internet of Things.”
Hager’s market position as one of the largest and most well-regarded firms in its industry is a Validation of the Hager family’s business strategy. Their investment and stewardship has allowed Hager to become an influential player competitive on a global scale. The owners’ patience to build Hager’s capabilities over generations has been rewarded.
Corporate Social Responsibility & Sustainability
As a large multinational corporation, Hager Group also dedicates significant resources towards social responsibility and environmental sustainability initiatives aligned to its values. Some examples include:
- Target of reducing CO2 emissions by 70% before 2030.
- EcoVadis Platinum sustainability rating since 2016, top 1% of companies assessed.
- Signatory of UN Global Compact since 2008.
- Named a Global Compact LEAD company in 2021, reserved for sustainability leaders.
- Running a company foundation providing healthcare support to disadvantaged communities where Hager operates.
Hager views its sustainability efforts as both a moral imperative and a key to continued success in the 21st century. This indicates that responsible stewardship extends beyond financial numbers alone for the owners. They seem to recognize their duties as global corporate citizens in addition to growing a profitable company.
Conclusion
In summary, Hager Group remains primarily owned and influenced by four branches of the Hager family via a holding company structure. The owners members provide oversight through a Supervisory Board while entrusting day-to-day management to outside executives. The family has guided Hager’s growth from a small French factory to a multinational industry leader. Their long-term strategic decisions and responsible stewardship of the company is evidenced in Hager’s financial success, competitive strength, cultural values and sustainability initiatives.
While evolving to a more complex global entity, Hager Group has retained its identity as a family-owned company that operates by unique principles. The Hager family owners have shaped the trajectory of the business over generations based on their values and aspirations. Hager exemplifies how family-controlled conglomerates can blend tradition and innovation to build distinctive brands with strong identities.