Deloitte Corporate Finance GmbH acted as exclusive financial advisor to Mitsubishi Heavy Industries, Ltd. (“MHI”) and Primetals Technologies Limited (“Primetals”) on the acquisition of ABP Induction LLC (“ABP”), a global manufacturer and servicer of induction furnaces and heating systems, from the Chicago-based private equity firm CM Acquisitions.
About the transaction
The Deloitte Corporate Finance Advisory team (“Deloitte”) in Frankfurt am Main, led by Claudius Thiell together with David Schaibasjan, has successfully advised MHI and Primetals on the acquisition of ABP Induction LLC from CM Acquisitions.
ABP provides state-of-the-art equipment for ferrous and non-ferrous metal casting, forging and steel making. Its main products are induction melting, holding and pouring furnaces as well as induction heaters. ABP offers a variety of best-in-class products and comprehensive services to blue-chip customers, including leading automotive OEMs and suppliers, industrial manufacturers, independent foundries as well as steel plant manufacturers and steel producers. Service centers are strategically located close to the major industrial areas in Germany, the United States, China, India, Mexico, Russia, South Africa, Sweden and Thailand. ABP generated revenues of c. 90 million US Dollars in 2018 and employed approximately 400 people across all locations.
As a leading German M&A advisor Deloitte demonstrated first-class execution capabilities. Deloitte’s strong industry know-how and the ability to deliver a highly flexible, client-tailored solution provided significant value-add to MHI and Primetals and ensured a smooth, efficient and successful transaction. In addition, Deloitte demonstrated its capabilities as a cross-functional organization with Deloitte Corporate Finance Advisory working together seamlessly with the Deloitte Transaction Services, Deloitte Tax and Deloitte Legal teams to provide the client with an integrated service package from a single source.
About the client
MHI is one of the world’s leading industrial firms with a history of more than 130 years. The company delivers innovative and integrated solutions across a wide range of industries, covering land, sea, sky and even space. MHI employs 80,000 people across 400 locations, operating in three business domains: „Power Systems“, „Industry & Infrastructure“ and „Aircraft, Defense & Space“. MHI has a consolidated revenue of around 40 billion U.S. Dollars.
Primetals Technologies has pioneered innovative solutions for the metals industry for over 60 years, as it unites the rich technological legacy of predecessor companies Mitsubishi Hitachi Metals Machinery and Siemens VAI. Founded in 2015 as a joint venture between Siemens and Mitsubishi Heavy Industries, Primetals Technologies strives to serve metals producers as the global authority in metals excellence.
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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