Alantra acts as Nominated Advisor to Comer Industries on the acquisition of Walterscheid Powertrain Group

Jul 2021

Buy-side advisory

Milan – Alantra, the global investment banking and asset management specialist, is pleased to announce that his client Comer Industries, a global leader in the production and sale of specific components for power transmission, advanced engineering systems and mechatronic solutions, has acquired 100% of Walterscheid Powertrain Group (“WPG”), a leader in the Off-Highway sector. The transaction consolidates one of the main global leaders in mechanical engineering for the agricultural sector.

Established in the 1970s, Comer industries is a global leader in the production and sale of specific components for power transmission, advanced engineering systems and mechatronic solutions. These include gearboxes, planetary drives, powertrain systems, wheel drives, drive shafts in agricultural and construction equipment vehicles and on wind towers. The Company has over 1300 employees and 7 production sites across the world.

Headquartered in Germany, WPG is a global industry leader for highly engineered, mission critical powertrain systems and services off-highway and industrial applications. Previously owned by the private equity fund One Equity Partners, with 9 production facilities, over 2200 employees, 8 portfolio trademarks, 20 service centers in 16 different countries and 130 distribution partners, WPG recorded a consolidated turnover of € 396 million in 2020. With a platform that extends its presence over 4 continents and an established customer portfolio, WGP is a leading technology partner for the primary global manufacturers of original components.

The acquisition of WPG by Comer Industries consolidates one of the leading mechanical engineering groups in the world for the agricultural sector. The group resulting from this combination will have pro–forma revenue of € 792 million and an adjusted EBITDA of € 86,5 million, based on the aggregated data on 31 December 2020. The Storchi Family will continue its long-term commitment, retaining control of the Group with a majority shareholding of 51,05%.

 “We are thrilled to have supported Comer Industries in their new partnership with Walterscheid Powertrain Group, which will give rise to a new European champion, ranked among the world’s mechanical engineering leaders in the agricultural sector.” Commented Stefano Bellavita, Managing Partner at Alantra. He added: “This transaction constitutes the largest M&A deal carried out by an Italian company listed on the AIM and confirms Alantra’s privileged position as leading advisor in the European M&A market.”

The acquisition takes the form of a reverse take-over pursuant to Article 14 of AIM Italia’s Regulation and is subject to the condition precedent of the shareholders’ meeting approval.