There was light

From shopping centres to luxury brands

Illuminated advertising creates a radiance that attracts attention worldwide. But behind the impressive illuminated signs of IKEA, Rolex and Porsche Carrera lies not only innovative technology, but also, in the case of Maas+Roos Signage, craftsmanship and entrepreneurial vision. The long-established company from Middle Franconia has developed from insolvency to become a global quality leader with its tailor-made illuminated advertising systems – thanks to a visionary strategy and the support of BayBG.

The origins of Maas+Roos date back more than 100 years. The original founders came from Scandinavia, and the illuminated advertising company has been operating under its current name in Hilpoltstein, Middle Franconia, since 1959. In its early years, the company produced mainly illuminated advertising for the Scandinavian market in a small workshop, benefiting from favourable location conditions. Business was good, and in the 1990s, the company made a major breakthrough: Maas+Roos invented the patented product ‘LP-Flex’ (‘Light Profile Flexible’).

LP-Flex: A product that set a benchmark

Until then, fluorescent and neon tubes had been used in illuminated advertising, which made it difficult to display intricate logos or brands. With LP-Flex, LEDs could be individually inserted into a large acrylic panel. By illuminating the acrylic, it was suddenly possible to precisely illuminate any intricate shape of a business logo and, unlike the bulky fluorescent tube boxes, transport it easily and cost-effectively all over the world. At the same time, Maas+Roos ensured that LP-Flex complied with the technical guidelines and electronic regulations in various countries, enabling worldwide delivery with consistent quality. This enabled the company to usher in the triumph of LEDs in illuminated advertising.

The product innovation became an international success and made Maas+Roos the quality leader in the illuminated advertising industry in the years that followed. The company expanded worldwide and established subsidiaries and production facilities in India and Dubai. Ten years ago, a group of investors from Hamburg joined Maas+Roos and the company grew into a group with over 500 employees. But this success had its pitfalls. The new, larger structure brought challenges for management and, over time, serious differences arose. The consequences of the coronavirus pandemic did the rest and ultimately led to the opening of insolvency proceedings.

Strategic realignment: large-volume production and the luxury segment

The long-standing members of the Maas+Roos management board, Alexander von der Grün and Sebastian Gemählich, demonstrated entrepreneurial courage and foresight in this situation: they jointly decided to continue running the traditional Franconian manufacturer. With considerable personal funds, personal guarantees and a bank that financed the management buy-outs of the insolvent company, they took over Maas+Roos. The rescue was successful, but the real work of strategic realignment was only just beginning. With around 130 employees remaining, the new owners were faced with the task of stabilising ongoing business while enabling new growth. After intensive planning, a concept was developed that was based on two pillars: on the one hand, quality leadership in the luxury segment and, on the other, expertise in the field of large-scale plants and major projects.

Leadership in quality in the luxury segment:

The focus on high-quality, tailor-made and durable illuminated advertising systems is intended to appeal in particular to exclusive customers such as Rolex, Porsche and other luxury brands that value German craftsmanship and very fine lettering. Positioning itself in the luxury segment should also enable Maas+Roos to take on higher-priced orders and thus gradually escape the price pressure exerted by cheaper suppliers from China and Eastern Europe in other segments.

Expertise in the field of large-scale plants and major projects:

At the same time, the managing directors wanted to diversify the company's portfolio. The aim was to move away from a niche focus – such as the high-quality LP-Flex product – towards a stronger market presence in large-scale projects. The opportunity was favourable: IKEA, already a partner of Maas+Roos at the time, needed complex and large-scale illuminated advertising systems for its stores. Maas+Roos therefore decided to further expand its capacities in the area of large-scale systems in order to become the main supplier of large-format illuminated advertising systems for IKEA and similar customers in the medium term. In addition, Maas + Roos also redesigned the façades for these customers and expanded entire sections of buildings.

Working together as equal partners

"Maas+Roos' story is that of a typical hidden champion among small and medium-sized enterprises. Despite a solid business model, the company ran into difficulties due to unforeseen events and clinging too long to “tried and tested” methods. The decision by the new owners to invest in innovation, growth and resilience immediately after the restart via equity financing has proven to be the right one," says Ruth Diringer, Senior Investment Manager at BayBG, who continues to oversee the partnership with Maas+Roos to this day. "At the time, we worked very closely with the managing directors and discussed various strategic perspectives. The cooperative partnership and the clear determination of both parties to make the strategic realignment a success convinced us then, as now, to invest in Maas+Roos."

Growth remains in focus

‘Going forward’ is meant quite literally: BayBG recently increased its stake in Maas+Roos at the initiative of the two managing directors. That's because Grün and Gemählich want to grow even further. The refurbishment business in particular still holds great potential: global companies such as IKEA are increasingly focusing on sustainability, including in the area of advertising. The idea is to refurbish and restore existing illuminated advertising systems and façades instead of completely rebuilding them.