Rasenberger Toschek assists with successful sale of a medium-sized metal foundry

The Metallgießerei an der Mulde GmbH (Freiberg) was acquired by the Georg Herrmann Metallgießerei GmbH (Oberschöna). In February 2017, a sale and purchase agreement was notarized to transfer all assets to the new owner.   The “Metallgießerei an der Mulde”, which specializes in aluminum processing, is a medium-sized company. Since 1991, the company in Freiberg (Saxony) has been manufacturing products for the measuring and control technology, dosing, pumps or turbo chargers, essentially for renowned internationally operating customers in the automotive industry, special facilities construction, packaging and textile industry. In September 2015, the Metallgießerei an der Mulde initially filed for debtor-in-possession proceedings, which resulted in a regular insolvency in March 2016. This was due to the dwindling revenues over the past years as well as the losses, which, together with the higher raw material prices in 2015, completely deprived the company of its economic basis.   The investor process organized by Rasenberger Toschek was performed by assignment of the insolvency administrator Mr. Christian Heintze, PhD. The procedure was focused and transparent in order to retain the trust of the remaining customers in the business on the upswing. For this reason, negotiations were only conducted in Europe and with 80% industry insiders. Only 20% of the negotiations were conducted with lateral potential strategic investors or financial investors.   In the scope of the transaction, all assets of the operating company as well as the property, which was held in a separate insolvency estate, were transferred.   The new owner, Georg Herrmann Metallgießerei, which specializes in the construction of machines and special facilities, has now significantly extended its own products and services offering with this acquisition. This now includes mechanical processing and thermal processing as well as capacities thanks to the vacuum molding facility and the CNC mode construction. It was possible to maintain all 44 highly specialized workplaces.   Responsible consultant on behalf of the Swiss M&A consulting company Rasenberger Toschek was Sebastian Kordt, CFA. He was in charge of addressing the potential investors and prepared the structured sale to the matching investor after intense talks.