Electra Partners Europe acquired TKFG, a supplier of high-end aluminium castings to the automotive industry, from Thyssen Krupp Automotive for an enterprise value of €155m. The deal is subject to competition approval and is expected to complete in the first quarter of 2005.
TKFG, which has sales of €280m, supplies global customers, including Volkswagen, DaimlerChrysler, BMW, Ford and Porsche. It is headquartered in Hildesheim, Germany.
Electra’s interest in the company stemmed from underlying growth opportunities. “This investment plays to our strengths, both geographically and in the industrial sector. The group benefits from a blue-chip customer base, a strong management team and growth prospects driven by continuing outsourcing within the automotive industry and the increased use of lighter metals in vehicles,” said Michael Boltz, director of Electra Europe.
On the exit front, Electra sold Safety-Kleen Europe to JP Morgan Partners a few months ago for £280m. It led the original £110m MBO of the business in December 1998. Since then, the firm has more than doubled its profitability to Ebitda of £28m.