Automotive Sector FY 2019 - PKF Attest... 4 Iberian M&A Overview –Automotive Sector –Selected...

Iberian M&A Overview

Automotive Sector

FY 2019

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Multiproduct:

CIE Automotive acquires Maquinados de Precisión de México, Cortes de Precisión and Somaschini SpA. [cross-border]

CIE Automotive SA, a listed Spain-based manufacturer and supplier of automotive components and sub-assemblies, has acquired Maquinados de Precision de Mexico and Cortes dePrecision de Mexico, the Mexico-based manufacturers of automotive components, for a cash consideration of USD 65.5 million. CIE will finance the acquisition through its existing cash.The transaction will enable CIE to utilize its productive assets and enable physical and commercial expansion in its technologies. The transaction further strengthens CIE’s position in theMexican automotive market. In 2019, Maquinados de Precision de Mexico S. de R.L de C.V., and Cortes de Precision de Mexico S. de R.L de C.V. are expected to generate EBITDA of USD18 million.

CIE Automotive SA, has also agreed to acquire Somaschini SpA, an Italy-based manufacturer of gears, whose applications include sectors such as transportation and automotive, as wellas industry or robotics, for an enterprise value of EUR 79.6m.The consideration is less than 5 times Somaschini’s current year EBITDA. CIE will fund the transaction using currentlyavailable cash. CIE plans to consolidate its presence in Europe, North America, Asia. The acquisition is expected to be completed in 2020.

Parts Holding Europe acquires a 75% of AD Bosch Recanvis [cross-border]

Parts Holding Europe SAS, a France-based distributor of car and other automotive components, has acquired 75% stake in AD Bosch Recanvis SLU, Spain-based automotive partsdistributor from AD Parts SL, for an undisclosed consideration. AD Bosch generated a revenue of around EUR 70 million in 2018.

Genan Holdings acquires BioSafe Industria de Reciclagens [cross-border]

Genan Holdings A/S, a Denmark-based company engaged in the business of scrap tyre recycling, has acquired BioSafe Industria de Reciclagens, a Portugal-based tyre recycling company,from Grupo NORS, for an undisclosed consideration. The acquisition will increase Genan’s production capacity. Genan will get a competitive edge in Southern Europe and the exportmarket. Genan’s R&D department will benefit from BioSafe expertise and together will be able combine ideas and knowledge.

Iberian M&A Overview – Automotive Sector – Selected Deals

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

Maquinados de Precisión de México

Cortes de Precisión de México

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Multiproduct:

Magna International Inc acquires Viza Geca [cross-border]

Magna International Inc, a listed Canada-based manufacturer and supplier of automotive systems and components, has acquired Viza Geca SL, a Spain-based manufacturer ofautomotive seating, from Viza Group. The transaction value was not revealed.

Grupo Antolin-Irausa acquires 40% stake of Walter Pack

Grupo Antolin-Irausa SA, the Spain-based company engaged in designing, developing, manufacturing and distributing automotive components, has acquired a 40% stake in Walter PackSL, the Spain-based company that designs and manufactures plastic moulds, for an undisclosed consideration.

Bergé Automoción acquires Wholesale distribution trade and assets business in Switzerland from Korean Motor Company

Bergé Automoción S.L., the Spain-based company automotive distributor, has acquired Wholesale distribution trade and assets business in Switzerland, from Hyundai Korean MotorCompany NV, for an undisclosed consideration.

Porsche Holding GmbH acquires Sociedade de Importação de Veículos Automóveis, S.A.

Porsche Holding GmbH, an Austria-based company dedicated to the automobile retailing, has acquired Sociedade de Importação de Veículos Automóveis, from SAG GEST SolucoesAutomovel a company dedicated to the import and distribution of Vehicles of the Wolkswagen Brand in the Portuguese market. The transaction value has not been disclosed.


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Multiproduct:

Alkar Automotive acquires Melchioni Car System

Alkar Automotive SA, a Spain-based company engaged in retailing of sales of automobile mirrors and accessories, has acquired Melchioni Car System SRL, an Italy-based companyengaged in distribution of rear-view mirrors and lighting, from Melchioni SpA, for an undisclosed consideration. The transaction will allow Alkar to strengthen its position in the Italianand European market. Melchioni Car System generated turnover of EUR 134.8 million as of 31 December 2017.

Pujol acquires Idneo Technologies S.L

Pujol family, a Spain-based family, has acquired Idneo Technologies S.L a Spain-based engineering services company engaged in the design, development and manufacture oftechnological products, from Ficosa International S.A a Spain-based company that develops, produces and commercializes systems and automotive parts for vehicles. The deal value wasnot revealed. In 2018, Idneo reported revenues of EUR 33m and has 400 employees. In 2013, Ficosa had acquired a 50% stake in Idneo and became 100% owner of the company. Pujolfamily also owns 31% stake in Ficosa.

Amphenol Corporation acquires GJM, SA

Amphenol Corporation, the listed US-based manufacturer of cable and connectors for the communications, industrial, medical and military markets has acquired GJM S.A the Spain-based provider of interconnect assemblies for automotive applications. The deal value was not disclosed. Amphenol has concurrently acquired CONEC Elektronische Bauelemente GmbH,Kopek Industries and Bernd Richter GmbH. These 3 companies along with GJM have a combined turnover of around USD 150 million.


GJM S.A

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Multiproduct:

Arta Capital S.A acquires Nucap Europa S.A.

Arta Capital S.A, Group March Private Equity, has acquired Nucap Europa S.A., the Spanish manufacturer of braking system components, including metal brackets and anti noise platesfrom Nucap Industries inc, the Canada-based manufacturer of brake system components, for a consideration of EUR 100 milion. As part of the transaction, Nucap Europe acquires theChinese subsidiary of Nucap Industries, with production facilities in Shanghai, which will allow it to serve this Asian market and accelerate its internationalization. Under Artá Capital’sownership, Nucap Europe will be renamed as Nuadi and reinforce its Spanish profile. NUCAP Industries acquired 50% each stake in Nucap Europe in 2006 and 2010.

Berge automoción acquires FCA Finland Oy

Bergé Automoción SL, a Spain-based company automotive distributor enganged in distributing and retailing automotive vehicles, has agreed to acquire FCA Finland Oy, a Finland-basedcompany that designs, engineers, manufactures, distributes and sells vehicles, components and production systems, for an undisclosed consideration. The transaction is in line withBerge’s aim of achieving total sales of 20,000 units by 2022 with an estimated market share of 14% in the Finnish market. Pursuant to the transaction, FCA Finland will be renamed asItalmotor Finland Oy and the current employees of FCA Finland will continue with Italmotor Finland Oy.

KTM Power Sports AG acquires GAS GAS Motos S.A (60%)

KTM Power Sports, Austria-based manufacturer of Off-road and Street motorcycles, has agreed to acquire a 60% stake in GAS GAS Motos S.A, a Spain-based company engaged inmanufacturing off-road motorcycles and Racing parts from Torrot Electric. The deal value was not revealed. Under the terms of an agreement, the production of Gas Gas products andTORROT electric vehicles will be continued in Girona/Spain. The acquisition is subject to antitrust authorities’ approval. Earlier in February 2015, Torrot Electric had acquired Gas GasMotos. The deal was estimated to be valued at EUR 9.6 million.


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Multiproduct:

Talde Group acquires a majority stake in P4Q Electronics

Grupo Talde, the Spain-based venture capital firm, has acquired a majority stake in P4Q Electronics SL, the Spain-based maker of electronic products and systems for the solar,automotive and rail sectors .The deal value was not revealed. Post transaction, the company’s management team will retain the minority stake and will continue to lead the business.

Portobello Capital Gestión, SGECR, S.A acquires USA-Group

Portobello Capital has agreed to acquire majority stake in the Spanish Automotive component manufacturer USA-Group (Ugarteburu Sociedad Anónima). The financial terms of theacquisition were not disclosed. Portobello will invest in the transaction through its fourth fund. USA-Group’s current management team will continue to head the business. Thetransaction is expected to be completed in January 2020. USA-Group is specialized in the business of manufacturing decoletted parts, especially for the automotive sector. In 2018, thecompany posted a turnover of about EUR 40 million and an EBITDA of around EUR 7 million.

DSA Group acquires Vauste Spain from Quantum Capital

The German firm specialized in turnaround operations, Quantum Capital Partners, has closed the sale of Vauste Spain (former Tenneco) to the DSA Group, corporation of the ArabEmirates. Vauste produces shock absorber systems for the automotive supply industry as well as high-end magnesium components for automotive, rail, aerospace, defense, health and

electronic industries. As of today, the company employs a total workforce of 132 employees. The deal value was not revealed.



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Chasis:

Zeno Partners acquires Vangest Group

Zeno Partners, a private equity firm form Switzerland, has acquired Vangest Group, a Portugal-based company engaged in making mould for industries like automotive, aerospace,medical, electronic goods and consumer goods. The transaction value has not been revealed. Vangest Group includes eleven companies: MOLIPOREX, SA. MPTOOL. 3 Dtech - Producao,Optimizacao E Reengenharia, Lda. ATT- Advanced Tool Technology Lda. Distrim 2 - Industria, Investigaçao e Desenvolvimento, Lda. Grandesign Lda. DT2-RMC. EHTP - European High-TechPlastics, Lda. Distrim Sistemas. Cadflow Lda. Harchi.

Voestalpine AG acquires Jez Sistemas Ferroviarios (30%)

Voestalpine AG, the listed Austria-based manufacturer of steel for the automotive and auto supply industries, has acquired a 30% stake in Jez Sistemas Ferroviarios, a Spain-basedproducer of railway equipment. The transaction value was not revealed.

H/2 Capital Partners,Lda. acquires Quantal S.A (35%)

Hcapital Partnersvia its fund ESID, has acquired a 35% stake in Quantal S.A a Portugal-based producer of metalworking components for the automotive and capital Good, for anundisclosed consideration. Quantal exports more than 75% of its products and operates in 3 business segments: automotive prototypes, automotive small series and capital goodscomponents.

Trim:

Coindu - Componentes para a Industria Automovel, S.A acquires Bree Collection GmbH

Coindu - Componentes para a Industria Automovel, S.A, a Portugal-based manufacturer of seat covers has agreed to acquire BREE Collection GmbH, a Germany-based leather handbagdesigner, for a not revealed consideration. Bree filed for bankruptcy in May 2019 due to low sales, around EUR 21 million in 2018. The insolvency plan was submitted to the Hamburginsolvency court in September 2019. On 24 October 2019, the creditors unanimously accepted the plan. Bree has a workforce of 150 employees.



COINDU

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Automotive Sector

Financial data and valuation multiples of American and European listed companies

COMPANYSALES EBITDA EBITDA MARGIN EV / SALES EV / EBITDA

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

MU

LTIP

RO

DU

CT

CONTINENTAL AG 44.644 44.601 5.704 5.298 12,8% 11,9% 0,7x 0,6x 5,0x 5,4x

MAGNA INTL 35.618 35.232 3.774 3.452 10,6% 9,8% 0,5x 0,6x 5,2x 5,7x

JOHNSON CONTROLS 21.251 22.154 1.808 3.141 8,5% 14,2% 1,5x 1,4x 17,1x 9,8x

VALEO SA 19.037 19.435 2.179 2.401 11,4% 12,4% 0,6x 0,6x 5,2x 4,7x

CIE AUTOMOTIVE 3.165 3.566 559 616 17,7% 17,3% 1,7x 1,3x 8,5x 7,7x

SOGEFI 1.553 1.523 186 172 12,0% 11,3% 0,3x 0,3x 2,8x 3,0x

KONGSBERG AUTOMO 1.168 1.175 112 115 9,6% 9,8% 0,5x 0,5x 5,5x 5,3x

AKWEL 1.062 1.109 108 129 10,2% 11,6% 0,4x 0,5x 5,1x 4,3x

Median 11,0% 11,8% 0,5x 0,6x 5,2x 5,4x

MO

TOR

BORGWARNER INC 9.027 9.051 1.365 1.457 15,1% 16,1% 0,9x 1,0x 6,6x 6,2x

LINAMAR CORP 5.032 5.144 733 739 14,6% 14,4% 0,6x 0,7x 4,8x 4,7x

MARTINREA INTERN 2.587 2.627 310 343 12,0% 13,1% 0,5x 0,5x 4,7x 4,2x

MODINE MFG CO 1.886 1.813 139 150 7,4% 8,3% 0,5x 0,4x 5,8x 5,4x

ELRINGKLINGER AG 1.739 1.740 161 175 9,3% 10,1% 0,6x 0,7x 7,2x 6,6x

Median 12,0% 13,1% 0,6x 0,7x 5,8x 5,4x

CH

ASS

IS

GESTAMP AUTOMOCI 8.965 9.043 1.034 1.052 11,5% 11,6% 0,7x 0,7x 5,8x 5,7x

DANA INC 7.630 7.808 586 923 7,7% 11,8% 0,5x 0,6x 7,6x 4,8x

AMER AXLE & MFG 6.025 5.936 263 867 4,4% 14,6% 0,6x 0,7x 15,6x 4,7x

BREMBO SPA 2.611 2.602 499 503 19,1% 19,3% 1,3x 1,6x 8,3x 8,3x

Median 9,6% 13,2% 0,7x 0,7x 8,0x 5,3x

TRIM

FAURECIA 17.505 17.846 2.058 2.249 11,8% 12,6% 0,5x 0,5x 4,4x 4,0x

PLASTIC OMNIUM 8.323 8.545 987 961 11,9% 11,2% 0,6x 0,6x 5,1x 5,2x

GRAMMER AG 2.052 2.046 159 175 7,8% 8,6% 0,4x 0,4x 5,1x 4,7x

RIETER HLDG-REG 860 746 59 73 6,9% 9,9% 0,6x 0,6x 8,2x 6,5x

PLASTIVALOIRE 733 758 65 81 9,6% 10,7% - 0,6x 6,5x 5,2x

POLYTEC HOLDING 628 649 65 70 10,3% 10,7% 0,6x 0,6x 5,5x 5,1x

Median 9,9% 10,7% 0,6x 0,6x 5,3x 5,2x


Source: Bloomberg.

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Automotive Sector FY 2019 - PKF Attest... 4 Iberian M&A Overview –Automotive Sector –Selected...

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