Steinbeis experts help with the sale of a leading industrial and rail automation specialist
Business succession poses major challenges for companies and entrepreneurs. The Luetze Group is a great example of how to go about it. With the assistance of experienced deal partners Oliver Gaess and Georg Steimel from Steinbeis M&A Partners, its owners successfully completed the sale of 100% of their stake in the company to Amphenol Corporation.
Founded in 1958, the Luetze International Group is a global automation technology company headquartered in Weinstadt. With facilities in Europe, America and Asia, it supplies cable, interface, current control and control cabinet wiring solutions. In recent years, the development of new rail technology products has allowed the company to significantly increase its market share. The Luetze Group engaged Steinbeis M&A Partners to assist with the succession process and help it find the best solution for its needs.
Goal-setting
The Steinbeis experts worked with the company to define the key objectives of the transaction:
- New ownership to secure the company’s success
The transaction aimed to continue the growth achieved in recent years by partnering with a global player, unlock new markets, and leverage potential synergies. The focus was on the joint search for a future owner who would be best placed to help the company access new target industries and additional international markets. - Long-term prospects for management and staff
The owners were committed to supporting the company’s current management and staff and offering them ample opportunities for development. A shared future strategy and cultural fit were thus particularly important considerations in their search for potential buyers. - Sale of US and European businesses
The transaction included both the European and US operations, which are separate legal entities. This meant that two separate processes had to be initiated. There were two options on the table: sell both businesses to the same buyer, or sell them to different buyers. - Confidentiality
A small circle of carefully chosen individuals were responsible for preparing and executing the sale on behalf of the sellers. This ensured internal and external confidentiality throughout the project’s duration and allowed a strong bond of trust to develop between the buyer’s and seller’s project teams.
In Amphenol Corporation, the owners found a buyer who allowed them to meet all of these goals. Amphenol Corporation is one of the world’s largest designers, manufacturers and marketers of electrical, electronic and fiber optic connectors and interconnect systems, antennas, sensors and sensor-based products, and coaxial and high-speed specialty cable. The company designs, manufactures and assembles its products at around 40 facilities worldwide and sells them through its own global sales force, independent representatives and a global network of electronics distributors.
Success factors
One of the main keys to the transaction’s success was the compelling value growth strategy. The preparations and customer support began long before the process itself. During the preparatory stage, the team from Steinbeis M&A Partners worked with the customer to develop a growth strategy, drawing on its excellent industry know-how to formulate a compelling strategy for value growth.
The Steinbeis experts provided fast, global, end-to-end process management. This resulted in an efficient process that was a positive experience for all those involved, not least thanks to the extensive data that was prepared to support potential buyers. During the preparatory stage, the Steinbeis experts produced detailed financial, tax and legal factbooks to expedite the due diligence process for interested buyers. This also laid the foundation for professional data space management.
Outcome
The efforts of all those involved certainly paid off. The transaction allowed the Luetze Group to secure its future, giving the company a much stronger global presence. This will enable access to new international markets that were previously out of reach and allow the company to further diversify its target industries. As part of the Amphenol family, the company’s staff will also benefit from a range of development opportunities. Furthermore, operational and financial support from the corporation will allow management to press ahead with the digitalization and growth strategy.
Last but not least, the Steinbeis experts did everything possible to help the sellers achieve their target sale price, maximizing the revenue generated from the sale. The structuring of the transaction took both financial and tax considerations into account.
The experts from Steinbeis M&A
Partners provided professional management of this complex global sale process across two continents, ensuring a smooth and highly satisfactory transaction for all the parties. “Steinbeis M&A greatly exceeded my high expectations. I’m extremely satisfied with the professional, end-to-end process management and the final outcome. Their in-depth industry expertise allowed them to formulate a compelling value growth strategy and target the best-fit potential buyer. Throughout the entire process, my management team and I found them to be efficient, very trustworthy and pleasant to work with. I can unreservedly recommend Steinbeis M&A”, concludes Luetze Group owner Udo Lütze.
Project facts and figures
- 15 months total duration
- 38,000 document pages in virtual data room (VDR)
- 100% confidentiality vis-à-vis customers and employees
- 165 billion euros Luetze Group total sales
- 12 billion euros Amphenol Corporation sales
Contact
Oliver G. Gaess (author)
Partner
Steinbeis M&A Partners GmbH (Karlsruhe)
www.steinbeis-finance.de
Georg R. Steimel (author)
Partner
Steinbeis M&A Partners GmbH (Cologne)
www.steinbeis-finance.de
Jonas Tönnies (author)