Downer & Company Advises Schaeffler Group on Sale of LUK Fahrzeug-Hydraulik GmbH & Co. KG
BOSTON, April 4, 2006 - Downer & Company, LLC, an international investment banking firm specializing in middle-market cross-border acquisitions and divestitures, is pleased to announce the completion of the sale of LUK Fahrzeug-Hydraulik GmbH & Co. KG to Electra Partners Europe. The transaction, which was announced in late December of last year, was finalized on March 22, 2006. The deal value was not disclosed.
Downer & Company served as sole financial advisor to the Schaeffler Group during this auction process and was hired for the advisory role due to the firm's international makeup and automotive industry experience. Wade Aust, Managing Director with Downer & Company, spoke to the composition of the engagement team: "For the LUK transaction, as with all Downer & Company mandates, we built a dedicated cross-border team from our international offices. Investment banks often piece together cross-border teams through the use of ‘affiliated networks,’ but we rely upon our own employees from Boston, Paris, Frankfurt, Dublin and Sydney to staff our engagements."
The Schaeffler Group, through its INA, LUK and FAG brand names, is one of the worldwide leading bearing manufacturers and automotive suppliers. LUK Fahrzeug-Hydraulik, headquartered in Bad Homburg, Germany, is the leading designer and manufacturer of hydraulic pumps and air-conditioning CO2 compressors for premium and high-performance automobiles. In 2005 the company had approximately €260m in sales and 1,200 employees. Its client list includes companies such as BMW, VW/Audi, DaimlerChrysler and Toyota. The LUK brand name was not included in the sale, thus the acquired company will be renamed at a later date.
Ulrich Müller, Director of Downer & Company's Frankfurt office stated, "LUK is widely considered to be one of the ‘crown jewels’ of the German automotive supply base. We knew the sale would unquestionably lead to a robust and active auction process, but it was Downer & Company’s management of the sale process which led to the satisfaction of everyone involved."
"We spent a tremendous amount of time preparing the information materials as well as educating the management team on the sale process," said Jeffrey Robards, Vice President with Downer & Company, Boston. "We pulled together a comprehensive and informative study of LUK Fahrzeug-Hydraulik’s business and financials and did an excellent job of managing the various vendor due diligence providers. This allowed the buyers to make an informed and highly realistic bid from day one," he concluded.
Electra Partners Europe, with offices in London, Frankfurt and Paris, is a private equity firm with investments in the automotive, industrial, consumer, business service, financial service and healthcare sectors. Electra Partners, through its deep understanding and interest in the German automotive component industry, recognized a strong growth opportunity for the LUK business and will seek to work with existing management to develop these opportunities through a mix of new product development, organic growth and potential further acquisitions.
Downer & Company's senior engagement team consisted of Aust, Müller and Robards, assisted by Gregory Fanikos (Associate, Boston), Gilles Glorieux (Associate, Paris), Kim Chi Phung (Analyst, Frankfurt) and Geoffrey Lewis (Analyst, Boston).
About Downer & Company
For thirty years, Downer & Company, LLC, has gained distinction as a leading middle-market M&A firm focused on the execution of acquisition and divestiture mandates for international and domestic corporations and private equity firms. Downer & Company is headquartered in Boston, Massachusetts, and has offices in Paris, Dublin, Frankfurt and Sydney. Downer & Company received an award for transacting the "International Cross-Border Deal of 2004" and was recognized as the top Investment Banking Firm of 2003 by The Mergers & Acquisitions Advisor. Downer & Company's corporate headquarters are located at 60 State Street, Boston, MA 02109. For further information, visit www.downer.com. www.downer.com.
Ulrich Müller, Director - Frankfurt
R. Wade Aust, Managing Director
Patti Allan, Marketing Director