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Castwerk GmbH & Co. KG, a component manufacturer in the automotive industry, has been sold as part of an international M&A process. PLUTA Management GmbH provided both the owner and the company with comprehensive advice on this transaction.
Effective 1 July 2022, private-equity firm Sierra Zulu GmbH, together with Niemeyer Investment GmbH, has taken over all assets and the ongoing business operations. All Castwerk staff have been kept on. The purchase agreements have already been signed and the parties have agreed not to disclose the purchase price.
Company undergoing transformation
Castwerk, based in Frankenberg, has its roots in the Hettich Group and has been operating as an independent company since 2019. In recent years, Castwerk has seen considerable growth. It is especially active in growth markets such as the magnesium casting business, with a focus on automotive systems (electronic assistance systems) and the urban mobility sector (e-bikes). Magnesium parts are significantly lighter than competing products made of aluminium, for example, and are in great demand.
Castwerk has been undergoing a comprehensive transformation process since 2021. In order to be able to meet increasing customer demand in the automotive industry in the long term, Castwerk decided to search for a strategic partner. This partner should have both technical know-how and the necessary market access to strengthen the company on a sustained basis.
Buyer with expertise found
Sierra Zulu GmbH and Niemeyer Investment GmbH have together been successfully tackling entrepreneurial challenges for many years. In this proven combination, they offer the industry-specific know-how required for the transformation of Castwerk as a casting company and automotive supplier.
“My special thanks go to all colleagues at Castwerk, who have pulled together with us during the transformation process thus far implemented. Likewise, I would like to thank all customers and suppliers, along with the M&A experts at PLUTA Management GmbH, who have supported the investor process in a highly professional manner,” said Mr Sascha Groß, managing director of the Hettich Group, who had also acted as interim managing director of Castwerk prior to the sale.
PLUTA supporting successful transaction
The experts at PLUTA Management GmbH were awarded an exclusive M&A mandate in December 2021. Their tasks included the initiation, structuring and comprehensive monitoring of the entire sales process – from documentation, identification of potential investors and due diligence, to contract drafting and signing. Mr Marcus Katholing, managing director of PLUTA Management GmbH, said, “Castwerk is undergoing a transformation. Within six months, we found a buyer that should lead the automotive supplier into a promising future.”
The PLUTA team:
Dr Maximilian Pluta (attorney, business management expert, tax consultant)
Mr Marcus Katholing (business management expert, qualified bank clerk)
Mr Ludwig Stern (business management expert)
Ms Verena Benz (Master of Laws, LL.M.)