Successful Sale of Nanogate Group
Munich, 11 May 2021. Nanogate SE, a world-leading technology company for design-oriented, multifunctional components and surfaces, has agreed on May 8 to divest its main business operations (“signing”) to Techniplas.
Headquartered in Goettelborn/Germany, Nanogate is a world-leading technology company developing and producing design-oriented, multi-functional components and surfaces primarily for the automotive and industrial industries. The company has an extensive technology portfolio and serves major international automotive and industrial clients across the world (e.g. Airbus, BMW, Daimler, Ford, GM, and VW Group). Nanogate comprises 22 legal entities at ten locations in seven countries; the shares of Nanogate SE had been listed in the Scale Segment of the Deutsche Börse Stock Exchange. With 1,800 employees, Nanogate reported sales of approx. EUR 243m in FY 2019.
Nanogate has shown an impressive growth path over the last years mainly driven by a strategically driven acquisition strategy. Late post-merger integration, operational deficits as well as the economic downturn in the automotive industry have led to an increasing profitability and liquidity crisis in mid-2019. The COVID 19 pandemic further amplified the company’s critical situation. Negotiations with financing banks for the compensation of liquidity needs failed and the Nanogate management filed for insolvency in self administration (protective shield) for Nanogate SE and five German subsidiaries on June 22, 2020. Foreign subsidiaries and part of the German subsidiaries have not filed for insolvency.
Together with restructuring expert Matthias Bayer, the self-administration was able to streamline and stabilize business operations, which facilitated the entry for investors. After an international sales process and intense negotiations with several bidders, Nanogate accepted the offer from US-based Techniplas Group.
Techniplas is a global supplier of highly engineered plastic components, primarily for the automotive sector as well as industrial, consumer, medical, and other markets. Techniplas has roots in U.S. plastics manufacturing dating back to 1941 and today has ten facilities globally generating sales. of approx. USD 500m. The Company’s owners, H.I.G Capital, Amzak Capital Management, and The Jordan Company, are supporting Techniplas’ sustainable growth strategy.
The transaction comprises acquisition of all major parts of the business assets of Nanogate SE and the insolvent subsidiaries Nanogate Management Services GmbH, Nanogate NRW GmbH, Nanogate PD Systems GmbH and Nanogate Neunkirchen GmbH by way of an asset deal as well as the investments in non-insolvent subsidiaries (e.g. Nanogate North America LLC, Nanogate heT Engineering GmbH, Nanogate Netherlands B.V., Nanogate Schwäbisch Gmünd GmbH, Nanogate Slovakia s.r.o.) through share deals. The transaction is subject to certain conditions.
Ali El-Haj, CEO of Techniplas, commented, “Acquiring Nanogate is a highly strategic and transformative transaction for Techniplas. The addition of Nanogate’s unique and proprietary finishing capabilities will strategically complement Techniplas’ core expertise in injection molding to create one of a few companies of scale with a full suite of molding and finishing capabilities. Together, the combined company will have 25 locations worldwide to serve our customers globally.”
Martin Hendricks, CEO of Nanogate SE, states: “Nanogate is on the verge of successfully completing the turnaround concept. The agreed acquisition of the core business by the Techniplas Group secures jobs and creates a stable basis for the future. As part of the international technology group, additional profitable growth opportunities will be generated based on the strong combined product and technology portfolio. The agreed transaction confirms that Nanogate has powerful technologies and an attractive customer base.”
Matthias Bayer, General Representative of Nanogate SE, adds: “However, the restructuring plan includes cuts for creditors and shareholders. In recent months, we have also had to reduce the number of employees in order to retain the core business and thus a large proportion of the jobs. This offers the remaining 1,600 employees a new perspective and creditors a considerable quota. During the insolvency proceedings in self-administration, production continued largely undisrupted: Securing production and reliably supplying our customers was and remains our highest priority.”
ACXIT Capital Partners acted as exclusive M&A advisor in the sales process of Nanogate.
ACXIT Capital Partners is a leading international corporate finance and financial advisory firm for mid-market clients, and entrepreneurs in Europe and beyond. Since 1998, we offer our clients comprehensive corporate finance advisory services including M&A and capital markets advisory as well as debt and strategic advisory. As an independent, privately owned firm we maintain offices and representations in Frankfurt, Munich, Zurich, Hong Kong and New York as well as strong alliances in the UK and France.
ACXIT Recovery develops and structures customized solutions for distressed Mergers & Acquisitions and focusses on financial restructuring for mid-size companies and insolvency administrators.
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