Kurtz-Ersa sells iron foundry to investment holdings company

  • Sep 2018
  • Industrial
  • M&A: Sell-Side
  • Germany

Livingstone’s Industrial sector team has advised Kurtz GmbH on the sale of Kurtz Eisenguss GmbH & Co. KG to Rheinische Mittelstandsbeteiligungs GmbH. The terms of the transaction are undisclosed.

Eisenguss has benefited in recent years from considerable investment aimed at achieving a significant share of the sub-10-tonne iron castings market. Its showcase Smart Foundry has gained worldwide recognition among experts as a prime example of a modern Smart Factory. During 2018, Kurtz decided to seek an investor for Eisenguss with sufficient expertise and market standing to support the long-term future of the foundry and its 90 jobs in the town of Hasloch near Würzburg.

The newly-acquired company will now operate under the name Eisenguss Hasloch Smart Foundry GmbH (“EGH”). The 166-year-old foundry joins the RMB’s existing iron foundries Hulvershorn GmbH & Co. KG and SHW High Precision Casting Technology GmbH to create a foundry group covering almost the entire spectrum of weights and sizes in all possible standard and special materials including ADI, chrome and chilled cast iron. The investor’s portfolio also includes the aluminium die casting company Eisenmann Druckguss GmbH.

“As an active investor in the iron foundry sector, this has been a very special opportunity to acquire EGH, one of the most modern hand-moulding foundries in Europe. The company’s production capacities complement our other portfolio businesses perfectly,” remarked Rainer Langnickel, Managing Director of RMB.

“We are convinced that RMB, with its complementary foundries, is the right home for the company, and that it will be able to exploit the relevant synergies within the group to great effect,” said Rainer Kurtz, CEO of Kurtz, summing up the deal. “We would particularly like to thank everyone involved in the deal team for their excellent work which was pragmatic, swift and professional throughout,” he added.

“We are delighted that the shareholders and management of the Kurtz Group placed their trust in us to assist them with the strategic direction the Group is now taking. The search for a seasoned industry expert and suitable long-term partner for Eisenguss’ leading facilities was challenging and exciting, and with RMB, we have found a promising solution. It was a great pleasure for us to be able to advise this established company on the sale and we would like to thank everyone involved for their excellent teamwork,” said Dr. André Schröer, Livingstone Partner in Düsseldorf.

The seller’s legal advice was obtained from lawyer and auditor Ulrich Bail and his team from Erlanger Treuhand GmbH in Erlangen.

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