Transaction Details

May 25, 2018
Milan, Tokyo

Sector

Industrials and Industrial Technology

Deal Type

M&A

Deal Team

Hiroaki Ota, Isao Okubo, Yoshitaka Sugita, Keisuke Miyanohara, Takeshi Hayashi, Tamotsu Sasaki, Carlo Dawan, Valentina Osele, Emilio Pestarino, Lorenzo Cabizza, Paolo Altomare

GCA advises Sumitomo Heavy Industries on the acquisition of Lafert Group

GCA acted as financial advisor to Sumitomo Heavy Industries on the acquisition of Lafert Group, a European leader in the design and production of electric motors and drivers customized for industrial use. This transaction underpins GCA's strong cross-border capabilities and significant experience in the industrial sector.

The acquisition of Lafert is a milestone in Sumitomo Heavy Industries’ expansion strategy in the electric motors and industrial machines electrification space. Lafert will be the global Competence Center for the research and development of all motors under the Sumitomo Drive Technologies banner and will also be the point of reference for the market development in the future.

Lafert will lead, on a global scale, the sales, marketing, R&D and engineering activities for motors manufactured in its production facilities, in Italy, Slovenia and China.

In 2017 Lafert Group reported a turnover of EUR 150m, with a growth of 9% on the previous year and an EBITDA margin above 10%. Sales revenues in the first quarter of 2018 are up 17% compared to 2016.

The robust financials of Sumitomo Heavy Industries will support Lafert’s growth strategy and will facilitate the company in consolidating its leading position in the electric motors market. Both Sumitomo Heavy Industries and Lafert will mutually benefit from accessing new markets.

The total value of the production of Sumitomo Drive Technologies’ electric motors following the acquisition of Lafert will reach EUR 250m, of which 24% is made up of brushless servomotors and torque motors, 12% is permanent magnet synchronous motors and 64% is asynchronous motors.

Carlo Dawan, Managing Director at GCA Altium, added: “This deal confirms that GCA Altium is very effective in making challenging projects a success, thanks to the efficacy of our combined cross-border team approach. This is the key to our success in fulfilling the needs of our customers.”

Hiroaki Ota, Managing Director at GCA, commented: “We are pleased to have worked with our important repeat client, Sumitomo Heavy, on its strategic acquisition to globally expand the gear and motor drive business. This transaction reflects GCA’s expertise in the industrial sector and our cross-border execution capability.”

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