mechanical engineering sector 1h 2020 - pkf attest...parts, from abac capital ltd., for around 200...

Iberian M&A Overview

Mechanical Engineering Sector

1H 2020

www.pkf-attest.es 2

Portobello Capital Gestión acquires an 80% stake in USA Group [domestic]

Portobello Capital Gestión SA, a Spanish capital fund, has acquired in January 2020 an 80% stake in USA Group, a niche industrial family company based in Vizcaya dedicated to the manufacture of precision metal partsmainly for the automotive sector , for around EUR 50 million (EV / EBITDA multiple of 7.0x).

Portobello, through its fourth fund, has acquired an 80% stake, while Easo Ventures and other co-investors will acquire a 10% stake in USA Group and the remaining 10% will be retained by the management team, thedirector General Mikel Uribe.

The investment will support the organic growth of the USA Group, consolidate its market position in Spain and invest in new machinery and product development. Following the transaction, the current USA Groupmanagement team will continue to lead the business.

Portobello plans to follow a buy and build strategy by acquiring four or five companies in Spain and the rest of Europe in the coming months.

BBB Industries acquires Metalcaucho [cross-border]

BBB Industries, Ltd., a US-based company that leads the remanufacturing of alternators for car engines, has acquired in June 2020 Metalcaucho Ltd., a company based in Spain dedicated to the design and distribution of carparts, from Abac Capital Ltd., for around 200 million euros.

The transaction will help BBB Industries expand its market reach and serve its customers more efficiently.

Based in Barcelona, Metalcaucho is dedicated to the sector of rubber and metal spare parts and accessories for automobiles. In 2015, it was acquired by Abac Capital through its Abac Solutions fund.

Hosokawa acquires Solids Solutions Group [cross-border]

Hosokawa Micron Corporation, the Japan-based company engaged in manufacturing particle, powder, and thermal processing machinery used to produce a diverse range of industrial and consumer end products, hasacquired in January Solids Solutions Group, a Spain-based industrial manufacturer, for an undisclosed consideration.

Solid Solutions Group is composed of 3 business units: (1) Systems for handling bulk solids, (2) Development & manufacture of machinery and equipment, and (3) Production center specialized in equipment andcomponents. After the transaction, two plants in Germany and two in Spain of the Solids Solutions Group will become the property of Hosokawa Alpine AG, specifically the German-based subsidiary Hosokawa Micron.

ROQ and Ryonet create a Joint Venture [cross-border]

In February 2020, ROQ, a Portuguese company controlled by the Spanish private equity firms Magnum Capital and Alantra Partners, and the American Ryonet have created a joint venture. The financial details of theoperation have not been made public.

The joint venture will distribute ROQ's products in the US market. ROQ manufactures screen printing machinery.

Iberian M&A Overview – Mechanical Engineering Sector – 1H 2020 Selected Deals

This document contains general information obtained from public sources and does not constitute a professional opinion or advice

www.pkf-attest.es 3

NBI Bearings Europe acquires a 51% stake in FKL India [cross-border]

NBI Bearings Europe SA, a company dedicated to the industrial production of bearings based in Spain, has acquired in February 2020 51% of FKL India, an Indian company dedicated to the manufacture and marketing of SRB(Spherical Roller Bearings) and TRB (Taper Roller Bearings) bearings, for an amount of EUR 1.5 million.

Following the operation, FKL India will be renamed NBI India.

NBI Bearings Europe acquires a 91% stake in Galindo [domestic]

NBI Bearings Europe SA, a company dedicated to the industrial production of bearings based in Spain, has acquired in February 2020 91% of Galindo, a company from the Basque Country (Spain), dedicated to the design,manufacture, verification and supply of tools for the industrial and aerospace sectors, for an amount of EUR 2.5 million, which implies an EV/EBITDA multiple of 5.4x.

With this acquisition, NBI Bearings Europe manages to: enter the aeronautical industry, strengthen and promote the machining unit and generate cross-sales.

NBI Bearings Europe acquires a 51,35% stake in ALPROM and a 100% stake in Turnatorie [domestic and cross-border]

NBI Bearings Europe S.A., has made two acquisitions in May 2020 in companies dedicated to the supply of aluminum components (manufactured by casting, injection and machining) for the automotive industry and to alesser extent for the general industry. The operations have consisted of:

- 51.35% of ALPROM, based in Burgos (Spain)

- 100% of Turnatorie, located in Romania

The combined amount amounts to EUR 15 million fixed plus EUR 1.5 million variable, subject to achieving an EBITDA of more than EUR 3.7 million in 2020.

Nadella acquires an 85% stake in Shuton and Husillos Ipiranga [cross-border]

Nadella, an Italian manufacturer of needle bearings, linear guide systems, telescopic guides and ball screw guides, has acquired in May 2020, 85% of the Spanish companies Shuton and Husillos Ipiranga from IAZ Group. Theamount of the transaction has not been made public.

Husillos Ipiranga and Shuton are specialized in the manufacture of high precision ball screws, serving the machine tool sector, injection molding and high demand automation, with a workforce of more than 100 employeesand a turnover of around EUR 20 million.

Iberian M&A Overview – Mechanical Engineering Sector – 1H 2020 Selected Deals


ALPROM

Turnatoire

www.pkf-attest.es 4

Source: Bloomberg

Selected companies

Financial data and valuation multiples of listed companies


SECTOR COMPANYSales EBITDA EBITDA margin EV/Sales EV/EBITDA

LTM FY+1 LTM FY+1 LTM FY+1 LTM FY+1 LTM FY+1

Machine Tool

DMG MORI AG 2.263 - 225 - 9,9% - 1,4x - 14,1x -

CONZZETA AG-REG (Including

metal processing)1.277 1.124 153 77 12,0% 6,9% 1,1x 1,5x 11,0x 21,9x

SCHULER AG 1.136 - (9) - (0,8%) - 0,4x - - -

GESCO AG 569 539 52 46 9,2% 8,6% 0,5x 0,5x 5,0x 5,6x

FEINTOOL INTL-RG 475 423 38 31 8,0% 7,2% 0,8x - - -

PRIMA INDUSTRIE 370 330 31 23 8,4% 7,0% 0,7x 0,8x 8,0x 10,8x

MIKRON HLDG-RG N 252 232 (5) (8) (1,9%) (3,4%) 0,2x 0,3x - -

HURCO COMPANIES 168 - 6 - 3,3% - 0,8x - 23,0x -

TORNOS HOLDI-REG 134 101 (14) (22) (10,3%) (21,7%) 0,7x 0,8x - -

NICOLAS CORREA 107 - 14 - 12,9% - 0,5x - 4,0x -

SIX HUNDRED GRP 69 70 6 - 8,7% - 0,7x 0,5x 6,0x -

DATRON AG 49 38 4 2 7,1% 5,2% 0,5x 0,7x 7,1x 12,5x

REKO INTL GROUP 27 - 3 - 10,5% - 0,5x - 4,2x -

Median 8,4% 6,9% 0,7x 0,7x 7,1x 11,7x

Forge and stamping

GESTAMP AUTOMOCIÓN 7.597 7.492 677 715 8,9% 9,5% 0,6x 0,7x 7,5x 7,1x

CIE AUTOMOTIVE (Including

machining, forge, stamping)2.967 2.922 440 422 14,8% 14,4% 1,4x 1,5x 9,6x 10,0x

ADVAL TECH-REG 128 120 12 10 9,2% 8,7% 0,7x 0,7x 7,0x 7,8x

Median 9,2% 9,5% 0,7x 0,7x 7,5x 7,8x

Various

OC OERLIKON CORP (Special

processing)2.136 2.064 219 231 10,3% 11,2% 1,2x 1,2x 11,3x 10,7x

KENNAMETAL INC (Special tools) 1.705 1.460 149 263 8,7% 18,0% 1,6x 1,8x 17,6x 10,0x

Median 9,5% 14,6% 1,4x 1,5x 14,5x 10,4x

www.pkf-attest.es 5

EBITDA margin

Selected companies

Financial data and valuation multiples of listed companies

EV/Sales EV/EBITDA

Machine Tool

Forge and stamping

Various

LTM FY+1

1,5x

1,4x

0,7x

0,7x

0,7x

0,7x

10,4x

7,8x

7,5x

11,7x

7,1x

14,6%

9,5%

9,5%

9,2%

6,9%

8,4%

Source: Bloomberg


Proudly part of the PKF global family

Corporate Finance

T.: +34 94 424 30 24T.: +34 91 556 11 99

[email protected]

www.pkf-attest.es

mechanical engineering sector 1h 2020 - pkf attest...parts, from abac capital ltd., for around 200...

Documents