Deal Announcement 12/16: Industrial Products
PwC acted as the exclusive M&A and restructuring adviser to Chiho-Tiande Group on the acquisition of Scholz
The Deal
The German PwC M&A & Restructuring/DCA1 teams assisted Chiho-Tiande Group (“Chiho-Tiande”), a listed Hong Kong-based investment company, as exclusive financial adviser in acquiring Scholz Holding GmbH (“Scholz”), one of the globally leading metal recycling and trading companies, on one of the largest and most complex German restructuring files in 2016.
Following a challenging M&A process, Chiho-Tiande convinced ultimately the lenders controlling the company to support their offer. Finally, Chiho-Tiande acquired debt packages from certain lenders, negotiated a settlement for the listed Austrian bond and acquired the rights and obligations of US lenders under various credit arrangements. Via a debt-to-equity swap, Chiho-Tiande became subsequently the 100% shareholder of Scholz.
Additional services of PwC to Chiho-Tiande included Commercial Due Diligence, M&A tax as well as support in the selection of new management members inter alia.
Through the acquisition of Scholz, Chiho-Tiande secured a stable upstream material supply from European and US markets next to Scholz’ clients and geographical presence as well as Scholz’ end-of-life vehicle dismantling and processing technology.
Scholz
Scholz is a world leading group of companies operating in the scrap metals recycling business with sales, prior to crisis, amounting to over EUR 5bn. The company is headquartered in Essingen (Germany) and recycled approximately 10 million tons of material in 2014. The company has around 5,000 employees at about 300 locations worldwide.
About Chiho-Tiande
Chiho-Tiande is a listed Hong Kong-based investment holding company engaged in processing and sales of metal scrap. The company is the largest mixed metal scrap recycler in China in terms of total import volume for mixed metal scrap. Chiho-Tiande is backed by USUM Investment Group which acquired a controlling stake in the company in 2015.
PwC
The global PwC network is a worldwide association of independent auditing and consulting companies which together employ more than 223,000 employees in 157 countries. Our global network comprises nearly 1,550 M&A and over 2,000 restructuring professionals all over the world, realizing over 400 successful transactions in 2015. We specialize in a wide range of independent corporate finance services including advice on acquisitions and disposals, mergers, public takeovers, privatizations, restructurings and turnarounds as well as structured financing.
The following PwC teams in Germany have been involved in the transaction:
Restructuring/Debt & Capital Advisory
Daniel Judenhahn (Partner), Alexander Hug (Senior Manager), Michael Strauß (Senior Manager), Julia Kriegsmann (Manager), André Lerchenmüller (Manager), Marc Kuhn (Senior Consultant), Christian Popp (Senior Consultant), Marius Wolter (Senior Consultant), and Lukas Lange (Consultant)
Mergers & Acquisitions
Matthias Loos (Partner), Sebastian Kirsch (Senior Manager), Constantin Gutknecht (Manager), Markus Müller (Manager) and Matthias Stuckmann (Consultant)
China Transaction Team
Wei Wang (Partner), Lei Guan (Senior Manager), Yasmin Li Drescher (Senior Manager), Zhisen Yu (Senior Consultant), and Dr. Le Wang (Consultant)
M&A Tax
Dr. Axel Mielke (Partner), Marc-Aurel Hillebrand (Senior Manager), Saso Engel (Manager), Christopher Bragrock (Senior Consultant), Mariya Seipel (Consultant)
Commercial Due Diligence
Ingo Schill (Senior Manager)
