Deal Announcement 09/19: Industrial Products/Engineering & Construction

The Deal

The PwC M&A German team is pleased to announce the successful Closing of Project HELIOS, the sale of ABP Induction Systems (“ABP”), a portfolio company of CM Acquisitions (“CMA”), to Primetals Technologies (“PT”) and Mitsubishi Heavy Industries (“MHI”). PwC M&A acted as exclusive financial advisor to CMA and ABP on this transaction.

ABP Induction Systems

ABP Induction Systems, LLC (“ABP”), with subsidiaries operating in nine countries, including operational headquarters in Dortmund, Germany has for decades been the world’s leading manufacturer of high-throughput induction melting, pouring and heating equipment. The Company provides high-quality induction furnaces for the foundry, steel and forging industries. It serves its customers around the globe with highly-reliable, state-of-the-art technology and a comprehensive range of services.

CM Acquisitions

CM Acquisitions, LLC (“CMA”) provides unique solutions for sellers of complex companies, corporate carve-outs or challenging situations. CMA invests private equity in middle-market businesses, primarily manufacturers of technically engineered industrial products. The Firm employs a buy and hold investment strategy with a mission to acquire, build and continuously improve exceptional businesses. CMA’s differentiated partnering approach provides aligned equity compensation for executive leadership and supports company management with hands-on resources to accelerate earnings growth. The Firm’s strength is attributable to the extensive business knowledge and experience in a variety of industries among its principals and partners.

Mitsubishi Heavy Industries Group

Mitsubishi Heavy Industries, Ltd. (MHI), headquartered in Tokyo, is one of the world’s leading industrial firms with 80,000 group employees and annual consolidated revenues of around 38 billion U.S. dollars. For more than 130 years, the company has channeled big thinking into innovative and integrated solutions that move the world forward. MHI owns a unique business portfolio covering land, sea, sky and even space. MHI delivers innovative and integrated solutions across a wide range of industries from commercial aviation and transportation to power plants and gas turbines, and from machinery and infrastructure to integrated defense and space systems.

Primetals Technologies

Primetals Technologies was founded on January 7, 2015, as a joint venture of Siemens, Mitsubishi Heavy Industries, and partners. The company’s solutions are based on over 60 years of innovation in the field of metals production. Its predecessor enterprises Mitsubishi-Hitachi Metals Machinery and Siemens VAI, have contributed greatly to the comprehensive, state-of-the-art portfolio that Primetals Technologies has at its disposal. While Primetals’ Technologies’ engineers are constantly working to refine many proven solutions, the company is simultaneously pioneering new production methods to facilitate persistent progress within the metals industry. For more information, please visit https://www.primetals.com/.

PwC

The global PricewaterhouseCoopers network is a worldwide association of independent auditing and consulting companies which together employ more than 255,000 people in 158 countries. Our global network comprises nearly 1,550 M&A professionals all over the world, realising approx. 400 successful transactions per year. We specialise in a wide range of independent M&A services including advice on acquisitions and disposals, mergers, public takeovers, privatisations as well as structured financing.

PwC M&A Germany acted as exclusive financial advisor to CMA and ABP on this transaction. The transaction was led by Alexander von Friesen (Partner) and Alexander Knögel (Director) and was executed by Andreas Altendorfer (Associate), Thomas Greger (Associate) and Aleksandar Petkov (Associate).