NEWS
Shentou provided Fairness Opinion to assist Grammer AG in acquiring Toledo Molding & Die Inc.
- admin
- 2018-05-22
- 10:11
Grammer AG (“Grammer”), Shentou’s client, has signed a contract to acquire 100% share of Toledo Molding & Die Inc. (“TMD”).
Based in Toledo, Ohio, Unite States, the TMD Group specializes in development and production of thermoplastic products and applications mainly for vehicle interiors for automotive and automotive supply industries. According to preliminary figures, TMD generated revenue of more than $300 million in the financial year 2017, consisting of 11 facilities in the United States and Mexico with approx. 1600 employees.
The purchase price for TMD amounts to approx. $271 million. Closing is expected to take place in the third quarter of 2018.
With this acquisition, Grammer expects to substantially expand its own product portfolio and process know-how in the sector of thermoplastic applications. The acquisition of the TMD Group will also give Grammer access to a new product segment that will lift Grammer’s earnings potential on a sustainable basis, thus helping to achieve its ambitious medium-term profitability goals. In addition, the acquisition of the TMD Group will strengthen Grammer’s market position and local value creation in North America and provide direct access to its locally-based customers in the USA.
During this acquisition, Shentou’s team members analyzed detailed synergies, risks, cooperation opportunities and profitability, and completed a comprehensive Fairness Opinion report for Grammer, after conducting site visits to TMD’s headquarter and facilities, as well as meetings with TMD’s management team. With conclusions favoring the combination, Shentou’s work provided a solid foundation for this acquisition.