Capital Corp Merchant Banking Structures $56 Million MBO of European Machining Leader

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The management of a leading Germany-based machine tools manufacturer will be buying out the company from its founder and investing as well to further growth. This is not only expected to strengthen the leader but also increase production and efficiency, as the European machine tools industry recovers and grows following the financial crisis.

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The company has nearly tripled its sales revenue in the last decade alone.

Capital Corp Merchant Banking has come on board to create the financing structure for the acquisition of a European machining company by its management (known as Management Buy-Out, or MBO) in the amount of USD $56 million. The MBO is geared towards one of Europe’s leaders in machining facilities for gray and ductile iron, steel, aluminum, and magnesium components. The company, based in Germany, is particularly lucrative, having nearly tripled its sales revenue in the last decade alone. It is in fact a favored supplier for some major automakers, among numerous others.

The world machine tools industry is sensitive to changes in the economic and financial climate. Demand responses to economic ups and downs are typically amplified in this industry highlighting the level of sensitivity to the broader economy. Thus, not surprisingly, the machine tools industry confronted its toughest challenge when the financial crisis induced world economic recession. However, according to a new report by Global Industry Analysts, with the recession now at its tail end, resurgence in growth fundamentals will aid in steady recovery in the upcoming years. The sheer diversity of application areas for machine tools ranging from aerospace, automobiles, process industries, wind power generation to mining, and oil exploration industries, will help ensure a quick recovery. Improving economic conditions will unleash pent-up demand as hitherto postponed purchase decisions resurge to provide commercial opportunities. To this day, Europe and Asia-Pacific account for the lion’s share of the global machining market.

Says Marktin Kapp, President of CECIMO, Europe’s association of the machine tools industry, “Europe has been developing its machinery base for many generations and now this high value-added industry with its knowledge-intensive skilled workforce is a backbone of modern European economy.”

The method by which this project is to be funded is the brainchild of Mr Gilles Herard, Jr. Mr Herard is a seasoned Merchant Banker and has been in the banking industry for 40 years. He worked early in his career at the Toronto Dominion Bank (Canada) and later on joined Manufacturer Hanover (MH) of New York as Senior Credit Analyst. He eventually created his own Firm, Capital Corp Merchant Banking, where he syndicates and structures funding for top companies worldwide, all the while investing his own firm’s funds into the projects. As the head of Capital Corp Merchant Banking, Mr Herard has become a leading figure in international middle-market project financing and engineers all funding structures for projects at Capital Corp. Mr Herard has received numerous awards for his work and other contributions including being appointed to the Presidential Business Commission, Honorary Co-Chairman of the Business Advisory Council, nominated as Executive of the Year by the internationally acclaimed National Register’s Who’s Who, and having received the Senatorial Medal of Freedom, among many others.

About Capital Corp Merchant Banking: Capital Corp Merchant Banking Orlando offers quality Merchant Banking services for a variety of projects worldwide. Capital Corp Merchant Banking has developed close working relationships with groups of Professionals: Specialists in Finance, Commercial Risks Insurance and Re-Insurance, International Accounting Firms and Law Firms, and the largest Valuation Firm in the world. Capital Corp Merchant Banking is solution-oriented and known for being the most flexible Funding Source on the Market in creating handcrafted investment structures to meet the needs of the different constituent groups in each individual transaction. Capital Corp Merchant Banking offers many services: Project Financing, Consulting, Due Diligence, Evaluation of a Business, Negotiating Services, Acquisitions, Investment Approach, and Presentation Reports as well. For further information, please visit the website.

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Capital Corp Merchant Banking project financingGilles Herard, Jr Merchant Banker. Capital Corp Merchant Banking Orlando