VTB Capital acted as the exclusive financial advisor to the German Prevent Group in its acquisition of the automotive parts manufacturer ES Automobilguss GmbH. This transaction represents VTB Capital’s first ever completed M&A transaction in Germany.
Prevent Group is one of the leading European Tier I car suppliers of interior components, seat structures, seat covers and brake systems to major global OEMs. The company has particularly strong connections to top German automotive manufacturers such as Volkswagen, BMW and Mercedes. Founded in 1952, the company is headquartered in Wolfsburg, Germany and has grown both organically and via acquisitions and currently employs more than 15,000 people worldwide with revenues in excess of EUR1.2 bn.
ES Automobilguss GmbH, founded in the 16th century, is a family owned modern foundry facility located in Schoenheide, Germany, manufacturing in excess of 7.5 mln of pre-machined and finished parts per year. Among ES Automobilguss GmbH’s largest clients are leading car manufacturers, including Volkswagen, General Motors, Ford, Porsche, Renault Nissan.
Riccardo Orcel, Deputy CEO of VTB Group and Head of Global Banking at VTB Capital, said “In 2015, VTB Capital has achieved a record 40% market share in Russian investment banking having closed 11 M&A deals. At the same time the bank significantly strengthened its international position. The Prevent Group transaction is the first M&A deal in Germany and follows a series of deals in the UK, Spain, Portugal, France, Italy, Turkey, China, India and the US"
Alexander Reznik, Head of Diversified Industrials in Global Banking at VTB Capital, said “This acquisition is a significant step for Prevent Group towards vertical integration and reflects on our ability to help our clients to execute on their strategy by providing the full range of VTB Group products, including our advisory expertise in the international arena. This transaction would not be possible without strong relationship developed by VTB ESH with Prevent Group."
In October 2015, Finance Monthly magazine (UK) recognised VTB Capital as the "Best Investment Bank in Russia and the UK" for M&A according to public votes as well as Finance Monthly’s own research. VTB Capital was ranked first for M&A activity in Central and Eastern Europe by Dealogic, Bloomberg and Thomson Reuters league tables covering 3Q 2015.
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