Transaction
Quarton International is pleased to announce that CapitalWorks, LLC (“CapitalWorks”) has sold Magna-Tech Manufacturing (“Magna-Tech” or the “Company”) to Henkel AG & Co. KGaA (“Henkel”). Magna-Tech is the North American market leader in vacuum impregnation services, with a focus on process center capabilities. Quarton International acted as the exclusive financial advisor to CapitalWorks and Magna-Tech in this transaction.
Magna-Tech will function as a subsidiary of Henkel, operating as part of its Adhesive Technologies business, the leading solution provider for adhesives, sealants and functional coatings worldwide. Magna-Tech’s vacuum impregnation services provide a complementary service business that leverages Henkel’s strong presence in the passenger vehicle market. This acquisition also enhances Henkel’s global footprint in impregnation services by adding to Henkel’s existing network of European and Asian process centers.
“As vehicle lightweighting continues to accelerate, vacuum impregnation is taking on an increasingly important role within the automotive industry,” said Angela Cackovich, Corporate Vice President, Transportation and Metals, Henkel Corporation, North America and Latin America. “The addition of Magna-Tech as a subsidiary of Henkel will help expand our role from a resin provider for vacuum impregnation to one that also offers process center services and equipment solutions.”
“Henkel’s impregnation capabilities are complementary to Magna-Tech’s portfolio,” said Rob Swords, Chief Executive Officer, Magna-Tech. “I look forward to a joint working relationship with Henkel and the opportunities that will result from this combined business environment.”
Client
CapitalWorks (www.capitalworks.net) is a Midwestern and family-focused private equity firm that encourages knowledgeable investors to partner with it in finding, vetting and owning companies. Based in Cleveland, Ohio, CapitalWorks acquires lower middle-market companies in the manufacturing, aerospace and financial industries and gives them the capital, support and freedom to grow.
Buyer
Henkel (www.henkel.com) operates worldwide with leading brands and technologies in three business areas: Laundry & Home Care, Beauty Care and Adhesive Technologies. Founded in 1876, Henkel holds globally leading market positions both in the consumer and industrial businesses with well-known brands such as Persil, Schwarzkopf and Loctite. Henkel employs almost 50,000 people and reported sales of $21.8 billion and adjusted operating profit of $3.5 billion in fiscal 2014. Henkel’s preferred shares are listed in the German stock index DAX.
Magna-Tech Manufacturing (www.magnatechmfg.com) is the largest independent provider of vacuum impregnation sealing solutions in North America for cast metal and electronic components. Based in Muncie, Indiana, the Company provides advanced sealing services on rapid delivery schedules from ten locations, including inside customer plants. Magna-Tech offers full-service vacuum impregnation solutions, including resin, equipment and related metal finishing services to the passenger vehicle, commercial vehicle, marine, power sport, mass transit and industrial markets.
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