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Business case acquisition of an automotive supplier
Buy a Belgium automotive supplier
- The acquired company is a large automotive supplier company located in Belgium
- The company that was acquired has revenues of more than 25 mio €
- The buyer, Methode Electronics, is an international automotive supplier that manufacturers small plastic automotive parts
- CFIE business acquisition input: The CFIE M&A team member Govert Derks did a screening of the European automotive suppliers market. The CFIE team already knew up to 50 European automotive suppliers that have an interest to sell their company. This acquisition is an important addition to Methode Electronics group of companies. The automotive supplier now has a manufacturing plant on the European continent to supply it’s European customers.
Overview of the target company (Belgium automotive supplier)
The acquired company focusses on manufacturing plastic parts for the automotive industry. The automotive supplier has a very automated procedure of manufacturing. The company produces more than 30m plastic parts on a yearly basis. The owner wanted to grow it’s company himself by acquisitions or join forces with a strong and larger player in the industry. The owner is convinced the company can grow better with the support of a strong international buyer. The automotive market is currently (2017) in an excellent state across Europe. However, in a few years this might be different. Further, it is clear that the shift to electronic vehicles will have a large effect on the market of automotive suppliers.
The strategy of the international automotive supplier
The buyer is a large size, stock listed international automotive supplier that is active all across the globe. The companies plan is to acquire a facility in Western Europe so it can service it’s European customers better. The location close to the German market is an ideal place to increase the communication with it’s German clients and cooperate more in the day to day projects the buyer is working on.
Activities of the CFIE M&A team in the support of buying the automotive supplier
The CFIE M&A team helps international buyers in acquisitions. The work consists in sourcing the right targets for an acquisition. The CFIE automotive and plastic team knows already a large set of automotive companies across Europe that have an interest in a business sale. CFIE does the communication to the targets and explains business owners about the advantages to grow further with a strong strategic partner. Govert Derks has spoken to a large number of automotive suppliers and has explained the buyers strategy. In this way he has sourced the most suited targets that fit this buyer best. After initiating the talks Govert managed the negotiations between the automotive supplier target company and the buyer. CFIE facilitated the contact to the automotive supplier and set up various meetings so both companies could get used to each other. CFIE supported in negotiating a suited LOI that was acceptable for both companies and helped further in the process of the acquisitions of this international automotive supplier.
Highlights of the acquisition of this automotive supplier
- Both companies are active as suppliers in the automotive industry
- The growth of the Belgium automotive supplier can be quicker with support of the buyer
- The target company has a focus on small plastic automotive parts and will be able to grow it’s services portfolio with the products of the buyer
- The international automotive supplier buyer can invest further to grow the set-up in Belgium
- The buyer can improve it’s relations with German clients via support in the local language
Information about business sales and acquisitions in the automotive supplying industry
Feel free to contact us for further details about this automotive supplier acquisition. If you are looking for acquisitions or business sales of automotive supplier companies in other European countries it is also good to contact us. We know many automotive supplier targets across Europe and many of these could be open for a sale. For more automotive suppliers for sale please visit the section automotive suppliers for sale. For more buyers of automotive suppliers please visit the section automotive suppliers wanted.