Mechanical Engineering Sector FY 2019 - PKF Attest... 3 Mechanical engineering for third parties...

Iberian M&A Overview

Mechanical Engineering Sector

FY 2019

www.pkf-attest.es 2

Mechanical engineering for third parties:

Fosber acquires Turiña (February 2019) [cross-border]

Fosber S.p.A., an Italy-based machinery and components manufacturer for the production of corrugated board packaging, acquired a majority stake in Spain-basedTiruña Grupo Industrial S.L., company with more than 60 years of experience in the large machining sector, whose activity is the manufacture and repair of metal partsfor various industries, specifically corrugating rolls, pressure rolls and related components. The financial terms of the deal have not been disclosed.

Tiruña Grupo Industrial S.L. has subsidiaries in Pamplona, Francia and Brazil.

Aciturri Aeronáutica acquires Acatec Aeroassembling (April 2019)

Aciturri Aeronáutica, S.L.U. a Spain-based aeronautical company, has acquired from Acatec S.L., machining, turning, milling and assembly company in the aeronauticalsector its specialized division in the assembly of aeronautical structures Acatec Aeroassembling S.L.U., the deal value was not disclosed. The transaction is in line withAciturri’s aim of strengthening its assembly division. Aciturri Aeronáutica S.L.U. has incorporated its supplier, Acatec Aeroassembling S.L.U., a company specialized inthe assembly of aeronautical structures, in order to control and accelerate the production and deliveries.

Amper acquires Formecal (August 2019)

Amper S.A., a Spain-based supplier of telecoms solutions, has completed the acquisition of 100% of Formecal S.L., also based in Spain and specialized in hot stampingof medium size parts, precision mechanization and assembly of parts, for a consideration of €7,2m. This incorporation to Amper group improves the group’s growthand development.

Formecal S.L. reports an annual turnover of approximately €6m per year.

Iberian M&A Overview – Mechanical Engineering Sector – FY 2019 Selected Deals

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

www.pkf-attest.es 3

Mechanical engineering for third parties (cont.):

CIE Automotive acquires Maquinados de Precisión de México, Cortes de Precisión de México (September 2019) [cross-border]

CIE Automotive SA, a listed Spain-based manufacturer and supplier of automotive components and sub-assemblies, has acquired Maquinados de Precisión de Méxicoand Cortes de Precisión de México, the Mexico-based manufacturers of automotive components, for a cash consideration of $65.5m.

The transaction will enable CIE to utilize its productive assets and enable physical and commercial expansion in its technologies. The transaction further strengthensCIE’s position in the Mexican automotive market. In 2019, Maquinados de Precisión de México S. de R.L de C.V., and Cortes de Precisión de México S. de R.L de C.V.are expected to achieve EBITDA of $18m.

Metal processing:

Ancon and Pedrachan acquire Retsa II and Megalta (January 2019)

Ancon S.L. and Pedrachan S.L., based in Galicia (Spain), have acquired Retsa II S.L. and Metálica gallega de transformados y acabados S.L. (Megalta), also based in Spain,for an undisclosed consideration. Both companies are based in Galicia and specialized in the protection of metal products against corrosion by hot-dip galvanizing.

Private investors acquire Galvanizados Tenas (January 2019)

A group of unidentified private investors have acquired from Cobalto S.L., Galvanizados Tenas S.A., who specializes in hot-dip galvanizing. The deal value was notrevealed.



Maquinados de Precisión de México

Cortes de Precisión de México

ANCON PEDRACHAN

www.pkf-attest.es 4

Forging and stamping:

Moly-Cop acquires Metso Spain Holding S.L. (January 2019) [cross-border]

Moly-Cop, an Australian company managed by the US private equity American Industrial Partners, has acquired Metso Spain Holding S.L., a Spain-based subsidiary of Finland-based Metso. The deal value is confidential. Metso Spain Holding S.L., based in País Vasco, is a machinery manufacturer operating in Bilbao and Seville, and is included within the forging, pressing, stamping and roll forming metal sector.

Aceros LST Bilbao acquires Laser Bidez S.L. (May 2019)

Aceros LST Bilbao S.L., a Spain-based company dedicated to steel trading worldwide, has acquired 100% of Laser Bidez S.L., also based in Spain, for an undisclosedconsideration. Laser Bidez S.L. based in Trapagaran, País Vasco, specializes in laser cutting of several materials and fine boiler making. The company is included withinthe forging, pressing, stamping and roll forming of metal sector. The acquisition is part of Aceros LST Bilbao S.L.'s strategy of diversification within the steel sector.

Sidenor Holdings Europa acquires Sidenor Forgings & Castings (June 2019)

Sidenor Holdings Europa S.A., a Spain-based steel manufacturer, has acquired a 24.9% stake of Sidenor Forgings & Castings S.L. from Sociedad para el DesarrolloRegional de Cantabria S.A. (Sodercan) for €15m. Sidenor Forgings & Castings is also dedicated to the steel production, specifically the manufacture and marketing oflarge forging and castings and the manufacture and marketing of steel material and products.

Sociedad para el Desarrollo Regional de Cantabria S.A. (Sodecarn) acquired a 24.9% stake of Sidenor Forgings & Castings also for €15m in 2017.



www.pkf-attest.es 5

Forging and stamping (cont.):

Tam Inmuebles acquires Umec (July 2019)

Tam Inmuebles S.L., a Spain-based real state company, has acquired Umec S.L., also based in Spain and dedicated to the manufacture of mechanical assemblies andtools. Umec S.L. is included within the forging, pressing, stamping and roll forming of metal sector. The deal value was not disclosed.

Artá Capital acquires Nucap Europe and Nucap Vehicle Component (Shanghai) Company (October 2019)

Artá Capital SGCR, S.A., a Spain-based private equity firm, has acquired Nucap Europe S.A., company dedicated to manufacturing, machining, stamping in bothmetallic and other non-metallurgical materials. As part of the transaction, Arta has also acquired Nucap Vehicle Component (Shangai) Company from Nucap IndustriesInc. Both acquisitions amounted a total consideration of €100m.

NFL Industrial Group acquires Sidenor Forgings & Castings (November 2019) [cross-border]

NFL Industrial Group, German-American industrial group owned by Benedikt Niemeyer, Bruce Liimaitainen, and Jason Fowler, has acquired a 75% stake of SidenorForgings & Castings a Sidenor S.L.. The deal value was not revealed.

To ensure an orderly transition, Sidenor Holding Europa S.A. will remain as a temporary partner of the remaining 25% stake for the next six years and has committeditself to purchase 30,000 tonnes of ingots annualy during these six years.


Tam Inmuebles

NFL INDUSTRIAL


www.pkf-attest.es 6

Forging and stamping (cont.):

Gestión e inversiones Jomal acquires Servi-chap99 and Peymo Peralta (November 2019)

Gestión e inversiones Jomal S.L., a Spanish holding company, has acquired, for an undisclosed consideration, the production units of the Spanish companies underbankruptcy proceedings: Servi-chap99 S.L., a company dedicated to manufacture and steel processing, and Peymo Peralta S.L., dedicated to metal transformation andpainting. Both companies are included within the metal sector, specifically in forging, pressing, stamping and roll forming.

Azpiaran acquires Grupo IDESA XXI and Grupo IDESA XXI México (December 2019) [cross-border]

Grupo Azpiaran S.L., a Spain-based company dedicated to stamping and metalworking technologies, has acquired a 100% stake of Grupo IDESA XXI S.L. (País Vasco)and Grupo IDESA XXI México, for an undisclosed consideration. Grupo IDESA XXI is specialized in forging, stamping, deep-drawing, die-cutting, steel and iron cutting.

Other deals within the metal sector:

A private investor acquires Fundiciones de Vera (March 2019)

A private investor has acquired Fundiciones de Vera S.A., a Spanish manufacturer of metal structures and components from Sicame group (Societé Industrielle deCarrosserie Automobile et Matériel). The buyer identity and the deal value have not been disclosed.



FUNDICIONESVERA

GESTIÓN-INVERSIONES JOMAL

www.pkf-attest.es 7

Machine tool and other machinery:

Grupo Equipamiento Auxiliar Spring, Induhold participaciones and Kaizaharra Corporación Empresarial acquire Azol Gas, Nitrocyl and Ingeniería ytecnología de mecanizados (June 2019)

Grupo Equipamiento Auxiliar Spring S.L., Induhold participaciones S.L. and Kaizaharra Corporación Empresarial S.L., Spain-based companies, acquire Azol Gas S.L.,Nitrocyl S.A. e Ingeniería and tecnología de mecanizados S.L., also Spain-based. The deal value was not disclosed.

The acquired companies based in Vitoria-Gasteiz, are engaged in the design, development, manufacture and marketing of nitrogen gas springs for metal stampingcomponents.

Inox Torres acquires Aguilar y Salas (July 2019)

Inox Torres S.L., a Spain-based company specializing in designing and manufacturing boiler equipment, industrial facilities, processing plants and turnkey projects, hasacquired Aguilar y Salas S.A. for an undisclosed consideration.

Aguilar y Salas S.A., based in Les Franqueses del Vallés, Cataluña, specializes in the design and construction of equipment for refineries, chemical industry, petrochemical industry and pharmaceutical industry, among others. The complementarity of both businesses will allow Inox Torres S.L. to offer complex engineering and boiler making solutions to a more diverse market and sectors.

Danobat Group acquires Hembrug Machine Tools (September 2019) [cross-border]

Danobat Group S. Coop, the Spain-based machine tool manufacturer acquires the Netherland company Hembrug Machine Tools from Upmato B.V. for an undisclosedconsideration.

Hembrug Machine Tool also a machine tool manufacturer has been acquired as a sector diversification and international expansion strategy. The transaction willenable Hembrug’s customers to benefit from the extensive service network of Danobat Group S. Coop.

Hembrug has around 65 employees and its revenues amount to more than €14 million in 2018.


EQUIPAMIENTO SPRING,

INDUHOLD PARTCIPACIONES

NITROCYL, INGENIERÍA Y

TECNOLOGÍA DE MECANIZADOS


www.pkf-attest.es 8

Trending Topics – Mechanical Engineering Sector – FY 2019

Jet engine parts manufacturing: a challenge for the aerospace and aeronautics industry (January 2019 AFMEC)

The requirements for materials used in jet engines are very strict. They must withstand extreme stress and temperature conditions, while being as light as possible and as reliable as possible.

Machining companies plan reach or exceed 2019 figures (November 2019 Basque industry fortnightly newspaper)

The first half of the year confirm that the positive trend will continue throughout 2019 and the sector will grow in terms of turnover, exports and employment.

A solid bet for the additive manufacturing in the manufacture of tools for industrial use (August 2019 AFMEC)

Regarding the technology evolution, more companies are joining the implementation of additive metal manufacturing for small series and custom components production.

Advanced automation systems in response to the 4.0 Industry (December 2019 Metal industry)

The transition towards 4.0 industry implies a change of paradigm that draws an increasingly complex manufacturing environment, in which it is necessary to develop sophisticated automation platforms, which allow the generation of flexible production systems capable of offering high quality results at competitive costs.

European companies have partnered to jointly strengthen their machining and assembly capabilities in the aerospace market (June 2019 ABC)

Through this alliance, the six companies will share business information and operational resources for international expansion and forge strategic alliances to encourage the establishment of new centres and develop their industrial and service offering, oriented to the aviation, defence and space markets.


www.pkf-attest.es 9

Source: Bloomberg

Selected companies

Financial data and valuation multiples of listed companies

SECTOR COMPANYSALES EBITDA EBITDA MARGIN EV/SALES EV/EBITDA

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

Machine tool

DMG MORI AG 2.716 - 303 - 11,2% - 1,2x - 10,8x -CONZZETA AG-REG (Including

metal processing)1.497 1.473 183 168 12,2% 11,4% 0,8x 1,3x 10,1x 11,0x

SCHULER AG 1.212 - 72 - 5,9% - 0,6x - 5,0x -FEINTOOL INTL-RG 594 589 70 64 11,7% 10,9% 0,8x 0,7x 5,9x 6,4xGESCO AG 585 521 66 54 11,3% 10,3% 0,6x 0,7x 5,5x 6,8xPRIMA INDUSTRIE 456 434 42 39 9,2% 9,1% 0,6x 0,8x 8,0x 8,5xMIKRON HLDG-RG N 296 308 20 21 6,8% 6,8% 0,4x 0,3x 4,5x 4,4xHURCO COMPANIES 234 - 23 - 10,0% - 0,7x - 6,5x -TORNOS HOLDI-REG 201 191 21 11 10,2% 5,6% 0,7x 0,6x 5,2x 10,0xNICOLAS CORREA 77 - 11 - 14,3% - 0,6x - 5,6x -SIX HUNDRED GRP 69 91 6 8 8,7% 8,4% 0,7x 0,5x 7,8x 6,1xDATRON AG 55 55 6 - 10,2% - 0,8x 0,7x 6,7x -REKO INTL GROUP 31 - 4 - 14,1% - 0,6x - 4,1x -

Median 10,2% 9,1% 0,7x 0,7x 5,9x 6,8x

Forge and stamping

GESTAMP AUTOMOCI 8.965 9.043 1.034 1.052 11,5% 11,6% 0,7x 0,7x 5,8x 5,7xCIE AUTOMOTIVE (Including

machining, forge, stamping)3.165 3.566 559 616 17,7% 17,3% 1,7x 1,3x 8,5x 7,7x

ADVAL TECH-REG 163 169 18 19 11,1% 11,0% 0,6x 0,5x 5,0x 4,9x

Median 11,5% 11,6% 0,7x 0,7x 5,8x 5,7x

Various

OC OERLIKON CORP (Special

processing)2.349 2.438 362 373 15,4% 15,3% 1,4x 1,3x 8,5x 8,2x

KENNAMETAL INC (Special tools) - 1.978 338 308 16,5% 15,5% - 1,6x 9,4x 10,3x

Median 16,0% 15,4% 1,4x 1,4x 8,9x 9,3x


www.pkf-attest.es 10

EBITDA margin

Selected companies

Financial data and valuation multiples of listed companies

Source: Bloomberg

EV/Revenues EV/EBITDA

Machine tool

Forge and stamping

Various

LTM FY+1

1,4x

1,4x

0,7x

0,7x

0,7x

0,7x

9,3x

8,9x

5,7x

5,8x

6,8x

5,9x

15,4%

16,0%

11,6%

11,5%

9,1%

10,2%


Proudly part of the PKF global family

Corporate Finance

T.: +34 94 424 30 24T.: +34 91 556 11 99

[email protected]

www.pkf-attest.es

Mechanical Engineering Sector FY 2019 - PKF Attest... 3 Mechanical engineering for third parties...

Documents

Transcript of Mechanical Engineering Sector FY 2019 - PKF Attest... 3 Mechanical engineering for third parties...