Equita exits Stromag in €195m trade sale

The sales price consists of €164m equity and a €31m repayment of debt. The acquisition price equates to a 7.5-8x mulitple of the company's expected 2011 EBITDA. The sales process was arranged by Robert W Baird.

Previous funding
Equita acquired Stromag in 2007 from its founding family for an undisclosed amount.

Company
Unna-based Stromag is a specialist in engineering solutions for the mechanical drive technology sector. Founded in 1932, the company manufactures hydraulic clutches, electro-magnetic brakes and flexible couplings for the automotive, powder metallurgy, land systems and aerospace sectors. It has manufacturing sites in Germany, France, Brazil, India and the US as well as a network of agents and distributors worldwide. The company employs approximately 850 staff and had a turnover of €111m and an EBITDA of €19m in 2010. For 2011, Stromag expects a turnover of €140m and an EBITDA of €25m.

People
Michael Hönig, Hansjörg Schnabel and Hans Jürgen Wiemker managed the transaction for Equita.

Advisers
Equity – Robert W Baird, Michael Wolff, Sven Harmsen (Corporate finance); Watson Farley & Williams, Simon Preisenberger (Legal).

 

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