SMS Maschinenbau’s future secured – Chinese investor acquires business operations

An investor has been found for SMS Maschinenbau GmbH based in Albstadt, Baden-Württemberg. Under the ongoing debtor-in-possession proceedings, Hengerda New Materials (Fujian) Co., Ltd. from China will acquire the business operations and take on all 74 employees. The relevant parties signed the purchase agreement on 8 May 2025.

This outcome has been preceded by weeks of intensive and complex negotiations with multiple interested parties as part of the cross-border transaction. The restructuring proceedings have therefore produced the best possible result.

Over recent months, the restructuring process has been supported by PLUTA Rechtsanwalts GmbH through general agent Mr Stefan Warmuth together with Ms Carina Hönle. Attorney Mr Markus Fünning was responsible for the contract drafting.

Debtor-in-possession restructuring proceedings were opened on 1 May 2025. The Local Court of Hechingen appointed attorney Mr Martin Mucha from law firm GRUB BRUGGER as insolvency monitor to oversee the proceedings in the interests of creditors. His team has included attorney Mr Tobias Bodenhöfer and others.

benten capital GmbH & Co was appointed to conduct the process of finding an investor, with leadership from Mr Felix Kröll and Dr Florian Eisele.

“The investor agreement now reached gives SMS Maschinenbau an opportunity to complement its technological offering with that of the new owner and to continue to operate in the market in the long term,” said PLUTA attorney Mr Stefan Warmuth.

Expert in thread grinding machines

Production will be maintained at the previous high standard. The company will be able to continue to manufacture innovative thread grinding machines for customers across a wide range of applications. Mr Norbert Schmitz, the present managing director, has extensive expertise and will remain available to the company in an advisory role in the future.

SMS specialises in developing and manufacturing machine tools for the precision machining of threaded workpieces, gearwheels and tools. Its range of special machine engineering services includes both new machines and retrofit solutions (modernisation and upgrading of existing systems) as well as aftersales. Its customers are mainly midsize companies that produce cutting and measuring tools or drive, conveyor and pump elements. The business operates internationally, supplying German customers as well as the European and Asian markets. In recent weeks, the company has been able to produce several special machines and deliver them to customers based in India and China while involved in provisional debtor-in-possession proceedings.

Listed investor plans growth

With Hengerda New Materials, those responsible have succeeded in finding a financially strong investor for SMS. The Chinese company generates annual sales of over 70 million euros and has a workforce of more than 800 people.

Director Mr Junfeng Fang from Hengerda New Materials said, “We see great potential in the technology and are pleased to jointly embark on the next stages of growth. We will invest in this site in Baden-Württemberg with a long-term perspective.”

Hengerda New Materials was founded in 1995 and successfully completed its IPO on the ChiNext of the Shenzhen Stock Exchange in 2021. The company is mainly engaged in the development, production and sale of metal cutting tools, such as punching steels, bandsaw blades, circular saw blades and machine tools, and the provision of services relating to these.

Insolvency monitor Mr Martin Mucha added, “We have worked together to find a solution that secures the company’s future, safeguards the jobs and protects the creditors’ interests – a result that cannot be taken for granted in the current M&A landscape.”