Callista exits Eurotech to casting company

Callista selles Eurotech Guss Schwäbisch Gmünd GmbH

Exit to strategic player in the aluminum foundry industry

Buyer will increase capacity utilization with new projects from other industries

 

Munich, 01.01.2023. Callista Private Equity GmbH (“Callista”), through Callista Asset Management 19 GmbH (“Seller”), announces the sale of Eurotech Guss Schwäbisch Gmünd GmbH (“Eurotech”) to RB Invest GmbH (“Buyer”). Mr Ralf Brinschwitz is shareholder of both, the Buyer and Metallguss Brinschwitz GmbH, located in Rastatt, Germany.

The Company, formerly known as MWK Schwäbisch Gmünd, produces aluminum sand casted parts, predominantly for heat exchangers in the heating industry. After the acquisition out of insolvency proceedings of Eurotech through Callista in January 2023, Callista was able to find a suitable buyer within 5 months only. During the short holding period and based on the restructuring work executed throughout the insolvency proceedings, Eurotech was trimmed to sustainably positiv and industry standard EBITDA margins.

The acquisition of the company is a strategic investment into a well-running aluminum foundry located in regional proximity to the Buyer mainly for the reason of capacity expansion. Under the new ownership, new projects shall be placed and produced at the Schwäbisch Gmünd site. All jobs will be maintained.

Olaf Meier, CEO of Callista comments on the swift exit: “Even though we orientate ourselves towards the industry standard holding period of 4 to 6 years when it comes to our investment decision and restructuring concept, we always remain opportunistically. Obviously, an exit after 5 months was not according to our plan, but anyhow we are happy to have found a suitable buyer with Ralf Brinschwitz, who can utilize the plant with new projects in this time of political uncertainties regarding the future of gas heating systems. Apart from the success that through finding this strategic shareholder the company is stabilized sustainably, the transaction was also a financial success, which is of course an integral part of our business model as a financial investor.”

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