Gutehoffnungshütte Radsatz
01 February 2008
GHH Radsatz, backed by SG Capital Europe, acquires Valdunes from Iceo to constitute the leading manufacturer of rail-wheels in Europe.
SGCE has completed the acquisition of Valdunes Entreprises by GHH Radsatz International Holding GmbH from Iceo. GHH and Valdunes are leading producers of railway wheel-sets on their home markets: France, Germany, Austria, Belgium and Switzerland, and enjoy strong positions on technically advanced products worldwide. The new management team, under the chairmanship of Ingar Jensen, former CEO of SAB Wabco, is drawn from both sides, and the members know each other well and have long-standing commercial relationships.
"GHH and Valdunes are taking the lead in consolidating the European wheels industry. The two companies have complementary products and markets and by combining the two businesses and the management teams we are creating a world leader in railway wheels technology," says Michael Walter, CEO of the new group.
"Bringing the two companies together addresses the challenge of railway wheels technology and safety. It brings genuine benefits to the customers, employees and shareholders," highlighted Jean-Pierre Auger, Executive Vice President Original Equipment and Development.
Philip Percival of SGCE commented: "This is precisely the sort of cross-border transaction, consolidating fragmented European industries, where SGCE with its international multi-office team, feels most comfortable. GHH has been an excellent investment and we have every confidence that the enlarged group will be an even better one."
Iceo said: "Valdunes has always been a key player in this market and this build-up is a significant step towards the development of the fast-growing railway technology sector."
The transaction was effected with a senior and mezzanine debt package underwritten by Bank of Ireland, who had financed SGCE's initial purchase of GHH in September 2005. The team at Bank of Ireland was led by David Walsh and Gwen Evans.
