After an intensive international bidding process with a time horizon of fewer than two months, Eisele Pneumatics GmbH & Co. KG, a German specialist in quality connection components, together with its US subsidiary Eisele Connectors Inc. was sold to the Austrian HENN Group, a company active in the field of connection technology.
The takeover of the Waiblingen-based family company Eisele by the family company HENN from Dornbirn ensures the future viability of Eisele and thus the majority of jobs. Due to the acquisition, the operational business of Eisele, as well as the location in Waiblingen, will be maintained. The highly specialised know-how of the employees could be retained for the future and combined with the expertise of the investor who is active in a complementary area. The company will be much more stable in the future and will be able to cover a large part of the value chain itself.
Wintergerst Societät für Unternehmer-Beratung was exclusively mandated to advise the sale of Eisele Pneumatics to the HENN Group.
An Interview With Mr. Volker Wintergerst Managing Partner at Wintergerst Societät für Unternehmer-Beratung
You addressed both national and international buyers – how do their demands differ, depending on jurisdiction?
Since the transaction schedule is the same for national and international buyers, the timeline is usually more ambitious for international buyers because they need to consider the legislation of two countries, i.e. Germany and their own, simultaneously. Hence, international buyers have a higher demand for advisory services by nature and therefore, it is not uncommon that they employ advisers in their home country and in Germany when they participate in a cross-border M&A process. Regarding Eisele, we also faced non-German speaking investors and the communication took place primarily between their advisers from Germany and us. In order to enable these investors to understand the relevant facts and make decisions, it was also necessary to translate all documents and essential information into English.
What do you look for, as an adviser, when seeking a suitable partner for both companies?
Since every company and the surrounding facts and circumstances are unique, the requirements regarding a suitable partner can differ from one project to another. Nevertheless, we generally look for partners that on the one hand present a comprehensive and sustainable concept for the target that provides the best overall solution for the future of the business, the employees and all other stakeholders. On the other hand, we require investors to ensure transaction safety, i.e. the ability to close the deal from a financial, as well as a timing perspective. These aspects are especially important in distressed M&A processes with a tight time schedule as was the case for Eisele.
There was an ambitious timeline of fewer than two months for this transaction; how did you ensure everything was complete up to standard despite the timeframe?
Since Eisele had generated negative results in the past, we first had to show potential investors how the company can achieve stable earnings again in the future and develop growth potential. This was the prerequisite for Eisele to be able to transact. In addition, there is always a limited period of time to complete an M&A process with respect to a distressed company. Hence, speed and experience are the key factors for success. Regarding Eisele, the timeline was very ambitious but a trusting working relationship could be found very fast with the family entrepreneur Martin Ohneberg from the HENN Group. Also, with its experience and focused knowledge in the areas of M&A, due diligence and restructuring, our team was able to make a valuable contribution to the success of the transaction.
