Callista acquires business of Eurotech Schwäbisch Gmünd GmbH out of insolvency
Operations will be continued under Eurotech Guss Schwäbisch Gmünd GmbH
Jobs in Schwäbisch Gmünd are saved
Munich, 11.01.2023. Callista Private Equity GmbH (“Callista”), through Callista Turnaround 15 GmbH (“Buyer”), announces the acquisition of the business of Eurotech Schwäbisch Gmünd GmbH out of insolvency proceedings. The insolvency administrator Jochen Sedlitz (GRUB BRUGGER, Stuttgart) continued business operations since the filing in October 2021. The Buyer will be renamed to Eurotech Guss Schwäbisch Gmünd GmbH (“Company” or “Eurotech”) and will continue the operations on site in full.
The Company, formerly known as MWK Schwäbisch Gmünd, produces aluminum sand casted parts, predominantly for heat exchangers in the heating industry. Back in October 2021, the Company employed 140 people. Besides operational and processual optimizations, the restructuring concept included a reduction of the workforce by slightly over 30 employees. During an open and structured M&A process, Callista was selected as the preferred party and agreed on the takeover of the operations as per January 1st, 2023. Apart from long-term agreements with major customers, the insolvency administrator also negotiated a supplementary tariff agreement with the union IG Metall, which eases the situation for the company to enable a sustainable restructuring throughout the next years.
Under its old name “MWK Schwäbisch Gmünd”, Eurotech was already under Callista’s ownership in 2015, when Callista acquired the company from Georgsmarienhütte. After the carve-out, Callista exited it successfully to a strategic player. Hence, Callista knows the Company very well and is convinced of the ability of the foundry to return to former success. Therefore, Callista invests another time into the Company to bring it back on track through measures to counteract the volatile energy market and secure the competitiveness in international markets. Due to the continuing consolidation in the aluminum foundry market, one major goal is to acquire new orders to diversify and extend the customer portfolio, for which sales activities will be boosted.
Jochen Sedlitz adds: “We like to thank all of the employees, which were loyal to the Company and supported it with high efforts throughout the insolvency proceedings.”