Electra agrees €155m German auto deal

Electra Partners Europe, the pan-European private equity firm, is acquiring TKFG, a German supplier of high-end aluminium castings to the automotive sector, from Thyssen Krupp Automotive for €155m.

Thyssen Krupp Fahrzeugguss (TKFG) has agreed to a €155 million ($206 million) offer from London-based mid-market investor Electra Partners Europe. The acquisition, which is subject to competition approval, is expected to complete in the first quarter of 2005.

Hildesheim-based TKFG, which has sales of €280 million, is a supplier of safety-critical and high-specification aluminium parts to global customers such as Volkswagen, Daimler Chrysler and Ford.   

“The group benefits from a blue-chip customer base, a strong management team and growth prospects driven by continuing outsourcing within the automotive industry and the increased use of lighter metals in vehicles,” said Michael Boltz, a director in the Frankfurt office of Electra Europe.

The deal is Electra’s first in Germany this year, having completed two deals in the country in 2003: the €120 million buyout of specialist water equipment firm OASE and the buyout of advertising and marketing group Scholz & Friends, in which Electra invested €22 million for a majority stake.

Electra’s most recent deal in Europe was in May 2004, when it teamed up with mid-market private equity firm Englefield Capital to buy the UK’s Global Solutions Limited, an outsourced support services provider, in a £207.5 million transaction.

Electra Partners Europe is an independent private equity business with €2.1 billion under management as of 31 March 2004 and offices in London, Paris and Frankfurt. It specialises in mid-market European buyouts in the support services, industrial, financial services and consumer-related sectors including healthcare services.