Strategic Investor takes over SHW CT in Königsbronn
We Help Companies.

Strategic Investor takes over SHW CT in Königsbronn

7 May 2018 · Königsbronn, Germany · Business Area Restructuring

  • The PLUTA team find an investor after continuing business operations successfully for almost one year during debtor-in-possession proceedings
  • All 163 members of staff will be given employment by the investor
  • Talks are being held with several parties interested in the two sister companies in Wasseralfingen and Königsbronn

Königsbronn, Germany, 7 May 2018. Mr Marcus Katholing, Managing Director, and the PLUTA team have found a buyer for the Königsbronn plant of SHW Casting Technologies GmbH & Co. KG. An investor, Rheinische Mittelstandsbeteiligungs GmbH (RMB), has acquired the company’s business operations and premises. The brand name SHW will be retained. In future, the new company will operate under the name SHW High Precision Casting Technologies GmbH. It has been agreed that the purchase price will not be published.

The new owner has absorbed all of the 163 employees. RMB GmbH is a strategic investor with a great deal of experience in the casting industry. Recently, the company bought a majority share in the Bocholt-based iron foundry HUBO Hulvershorn Eisengiesserei. HUBO specialises in hand and machine moulded casting for small to medium-sized series of workpieces, each piece weighing between 1 and 8,000 kg. The investor’s portfolio also includes the aluminium die casting company Eisenmann Druckguss GmbH. It intends to generate synergies between its existing portfolio companies and SHW, above all in sales and administration.

SHW CT in Königsbronn manufactures and processes parts weighing between 100 kg and 120 tons and is one of the world market leaders for manufacturing large paper calender rolls. Just recently, the company delivered a paper roll weighing 66 tons and made of a patented material called CDI (Chilled Ductile Iron) to a customer. Rolls of this size and made of this material can only be manufactured by SHW CT in Königsbronn and nowhere else in the world.

At the moment, talks are being held with several parties interested in the Wasseralfingen plant of SHW Casting Technologies GmbH & Co. KG and the Königsbronn plant of Machining Technologies GmbH & Co. KG. The two companies work closely together in the area of technology.

Debtor-in-Possession Proceedings since July 2017

Since July 2017, all three operating SHW Casting Technologies companies as well as the holding have been involved in debtor-in-possession proceedings. The Group is being assisted in this process by the restructuring firm PLUTA. Since then, Mr Marcus Katholing, Managing Director, has successfully continued business operations and initiated the sales process, which has now been successfully concluded for SHW CT in Königsbronn. Apart from Mr Katholing, PLUTA’s restructuring team for SHW Casting Technologies, headed by Mr Michael Pluta, also includes Mr Wolfgang Bernhardt and Mr Andreas Hummel.

The medium-sized consulting company Ebner Stolz is monitoring the M&A process. A team of experienced consultants around the partner Mr Michael Euchner are coordinating the international sales process for the entire SHW CT Group in the role of exclusive M&A advisors. The insolvency monitor is Prof Dr Martin Hörmann from the law firm anchor Rechtsanwälte. His role will be to support and oversee the debtor-in-possession proceedings.

PLUTA restructuring expert Mr Katholing explained, “We have achieved the best solution possible for SHW CT in Königsbronn. Since the plants are very specialised, we have decided to sell each company individually. I am delighted for the staff, who have shown a very high level of commitment in the past few months. It is now our goal to find the optimum solution for SHW CT in Wasseralfingen and Machining Technologies in Königsbronn.” Special mention should be made to the constructive collaboration with the insolvency monitor Prof Dr Martin Hörmann.

Mr Hörmann acknowledged the positive outcome of the proceedings, “The restructuring experts from PLUTA have done fantastic work during these difficult and complex proceedings. This is not only reflected in the fact that all the jobs were saved.”

SHW CT in Königsbronn successfully restructured

The long-established company had to file for insolvency for the first time in 2013. In spite of renewed insolvency, it was possible to restructure the company in Königsbronn so effectively during the debtor-in-possession proceedings that it can once more operate successfully. Since the foundry company filed for insolvency in July 2017, business operations have continued without any restrictions. Mr Katholing and his team have implemented restructuring measures in the Königsbronn plant. Besides an improvement in financial controlling and an optimisation of cost centre accounting, sales activities in particular have also been stepped up. This is reflected in a high order backlog of around 15 million euros. The plant in Königsbronn not only has full order books, but also managed to return to profitability once more. The company is expected to generate revenues of around 28 million euros in 2018, compared with 25 million euros in 2017.

Rainer J. Langnickel, Managing Partner of RMB, explained, “We are delighted about the successful acquisition of this long-established company. In the combination of SHW CT and HUBO we are in an ideal position to continue on our growth course. Moreover, we are already looking around the market and are confident that we will soon be able to make an additional acquisition – this is part of our strategy.”

The purchase agreement was already signed in April, however the takeover is subject to two conditions, including the conclusion of a company collective bargaining agreement with the trade union IG Metall. Negotiations are already taking place.

PLUTA expert

Michael Pluta

Michael Pluta
Rechtsanwalt, Fachanwalt für Insolvenzrecht, vereidigter Buchprüfer

Markus Katholing, PLUTA

Marcus Katholing
Diplom-Betriebswirt, Bankkaufmann

wolfgang-bernhard-rechtsanwalt-dipl.-kaufmann-münchen-pluta

Wolfgang Bernhardt
Rechtsanwalt, Diplom-Kaufmann

Andreas Hummel

Andreas Hummel
Diplom-Kaufmann, Controller Certificate CA, M. BC

PLUTA press contact

Patrick Sutter
relatio PR

+49 89 210 257-0

Download as PDF