Deloitte advised Sumitomo Electric Industries on the acquisition of Sinterwerke Herne GmbH and Sinterwerke Grenchen AG

Deloitte advised Sumitomo Electric Industries Ltd. (“Sumitomo Electric Industries”) on the acquisition of Sinterwerke Herne GmbH and Sinterwerke Grenchen AG (“Sinterwerke Group”), leading suppliers of powder metal products for the automotive industry in Germany and Europe.

About the transaction

The German Deloitte Corporate Finance Advisory team in Frankfurt am Main, led by Claudius Thiell and supported by Soichi Ota, Carolina Rossi and Julia Hellgren, successfully advised Sumitomo Electric Industries on the acquisition of Sinterwerke Herne GmbH and Sinterwerke Grenchen AG, headquartered in Germany and Switzerland, respectively. The Deloitte Financial Due Diligence team was led by Stefan Goetzen and Volker Pfleger and the Deloitte tax teams of Germany and Switzerland were led by Thomas Welz and Iris Moennich in Germany and Reto Gerber and Sabrina Fretz in Switzerland. Deloitte’s industry expertise as well as its integrated service offering ensured a smooth and efficient cross-border acquisition for Sumitomo Electric Industries within a short time frame.

Sinterwerke Group provides powder metal products for the automotive industry and achieved revenues of more than 70 million EUR in 2017 with a total workforce of over 400 employees. Key focus of Sinterwerke Group is the production of high-density sinter parts including soft-magnetic materials for established European OEMs and tier-1 suppliers.

Through the acquisition of Sinterwerke Group, Sumitomo Electric Industries will strengthen its powder metal division and sales capabilities in Europe, thereby enhancing its presence in the European automotive market.

By combining the powder metals activities of Sumitomo Electric Industries and Sinterwerke Group, business synergies can be achieved by expanding international sales area and by benefiting from Sumitomo Electric Industries’ existing presence in the market.

About the client

Founded in 1897, Sumitomo Electric Industries is based in Osaka, Japan with more than 250,000 employees worldwide. As a publicly listed company (WKN: 857716, ISIN: JP3407400005), Sumitomo Electric Industries achieved revenues of over 25 billion EUR in 2018 and is today an established partner for a wide range of industries including automotive, electronics, info-communications, industrial materials and environment & energy, standing for quality and long-lasting relationships with its customers and suppliers.

About Deloitte – Corporate Finance Advisory

As leading independent M&A advisors, we provide M&A deal execution and financial advisory services to large and mid-market corporations as well as to private equity firms globally. We offer financial advice and insight at every stage of a transaction – from consideration of strategic options to transaction execution, be it an IPO, acquisition or divestment, restructuring or fast track disposal. We pride ourselves in our independent advice to our clients.

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