With an operation that will be completed by the end of 2021, Comer Industries will acquire 100 percent of Walterscheid Powertrain Group, a primary German provider of highly-engineered mission-critical powertrain systems and services for off-highway and industrial applications.
Comer Industries is a global manufacturer of advanced engineering systems and solutions, mainly for off-highway applications, with headquarters in Italy.
In 2020, the two companies generated almost 800 million euros revenue and 86.5 million euros of adjusted EBITDA. The merger is based on highly complementary portfolios including aftermarket parts and related through life services for the agricultural, construction and industrial end markets.
The ultimate goal is to create a primary Group in the design and manufacturing of off-highway components addressed to off-highway applications.
«Walterscheid and Comer Industries share the same commitment»
«OEP (One Equity Partners, the private equity firm that will continue to own a significant minority stake in the combined company) has been an outstanding partner to Walterscheid and instrumental in supporting our growth over the last two years. We’re delighted the firm has decided to remain an investor in the combined business», said Wolfgang Lemser, CEO of Walterscheid Powertrain Group. «Walterscheid and Comer Industries share the same commitment to high customer quality service, safety, innovation».
The details of the financial agreement
Comer Industries sees promising growth opportunities in the partnership with Walterscheid and OEP. Matteo Storchi, Chairman and CEO of Comer Industries (pictured above, in the middle), commented: «Our collective knowledge and experience in the industry will provide the right strategic, financial and operational resources for building on Comer’s core business and pursuing new growth opportunities that lie ahead».
According to the communications released by the two companies, the agreement should be based on about 203 million euros. WPG Parent, currently the unique shareholder of WPG Holdco, controlled by One Equity Partners, will supposedly enter the Comer Industries capital with a share of 28 percent.
The Storchi family, owners of Comer Industries, will still hold the majority of shares (51.05 percent).