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Press Release
Dundas & Wilson advises Clyde Blowers Fund on Euro Merger
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Date:
09 Jun 2010
Law firm Dundas &Wilson has advised Maag Pump Systems, a company in the Clyde Blowers Fund portfolio and a Swiss-based maker
of pumps used in plastics materials, in cross-border European merger.
The deal brings together Maag with German business Automatik Holding GmbH, a similar sized manufacturer in the same sector, along with its subsidiary companies, including Automatik Plastics Machinery GmbH and Automatik Inc.
The merger is expected to create a £125 million business, employing more than 450 people in 10 countries, proving once again that Clyde Blowers continues to grow despite the adverse economic climate.
The merger is the first acquisition for the Maag group, only 18 months after Clyde Blowers Capital Fund II LP acquired the Maag group from Textron in 2008, and was backed by debt from Lloyds, Royal Bank of Scotland and Barclays.
The Textron acquisition was valued at $1billion with the Maag group representing around 12% of the overall value. Maag Pump Systems turns over c£66m and earns c£10m according to Jim McColl,Chairman & CEO of Clyde Blowers,who expresses the strategy of Maag as to create "the world's premier systems integrator for polymer and extrusion pumps".
Corporate partner Graeme Bruce,who led the Dundas &Wilson team on the deal, said: “Clyde Blowers continues to defy the downturn and shows that strong businesses can continue to flourish during difficult times. This was a great deal to work on,with a number of challenges presented by the cross-border nature of the transaction.
“Automatik Holding is a very good fit within the Clyde Blowers portfolio and will no doubt contribute to the ongoing success of the business.”
The deal comes at an exciting time for McColl and the Clyde Blowers portfolio of companies. McColl has said that the deal is likely to be followed by another in the "buy and build" strategy for Maag and a further acquisition for Clyde Union (the business acquired from Weir Pumps in 2007, also with the assistance of Dundas &Wilson).
The deal, which took almost 12 months to complete, involved months of tough negotiation and required complicated merger documentation to reflect the terms finally agreed.
The deal brings together Maag with German business Automatik Holding GmbH, a similar sized manufacturer in the same sector, along with its subsidiary companies, including Automatik Plastics Machinery GmbH and Automatik Inc.
The merger is expected to create a £125 million business, employing more than 450 people in 10 countries, proving once again that Clyde Blowers continues to grow despite the adverse economic climate.
The merger is the first acquisition for the Maag group, only 18 months after Clyde Blowers Capital Fund II LP acquired the Maag group from Textron in 2008, and was backed by debt from Lloyds, Royal Bank of Scotland and Barclays.
The Textron acquisition was valued at $1billion with the Maag group representing around 12% of the overall value. Maag Pump Systems turns over c£66m and earns c£10m according to Jim McColl,Chairman & CEO of Clyde Blowers,who expresses the strategy of Maag as to create "the world's premier systems integrator for polymer and extrusion pumps".
Corporate partner Graeme Bruce,who led the Dundas &Wilson team on the deal, said: “Clyde Blowers continues to defy the downturn and shows that strong businesses can continue to flourish during difficult times. This was a great deal to work on,with a number of challenges presented by the cross-border nature of the transaction.
“Automatik Holding is a very good fit within the Clyde Blowers portfolio and will no doubt contribute to the ongoing success of the business.”
The deal comes at an exciting time for McColl and the Clyde Blowers portfolio of companies. McColl has said that the deal is likely to be followed by another in the "buy and build" strategy for Maag and a further acquisition for Clyde Union (the business acquired from Weir Pumps in 2007, also with the assistance of Dundas &Wilson).
The deal, which took almost 12 months to complete, involved months of tough negotiation and required complicated merger documentation to reflect the terms finally agreed.
Our Contact:
Graeme Bruce
email
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