How a “traditional” wholesaler enabled international and digital growth through M&A
Being innovative in a traditional market is a complex commercial challenge and the involvement of an experienced equity partner can make all the difference when it comes to success. How can sell-side advisors and private equity partners find each other to make a perfect match?
A seller with particular ambitions
As a major player in the stainless steel and aluminium industry, HEGO has been in the steel business for more than 40 years. With an in-house service centre that handles cutting, laser cutting, polishing and decoiling, HEGO is the last word in quick-turnaround, custom-made stainless steel and aluminium products. If something is ordered on one day, it often is delivered the next. But the company wants more – growth and innovation. This requires additional knowledge and expertise that aren’t easy to find, so HEGO set out to find an acquisition partner that could help the company make its ambitions for growth a reality. Not an easy task for such a specific assignment.
The match – a suitable buyer found quickly
Edwin Haring from Of Course Corporate Finance was brought in as the sell-side advisor. By using Dealsuite, Mr Haring was able to quickly get in touch with multiple potential buyers. One of the interested parties was Globitas. This private equity firm has the in-house knowledge and expertise that HEGO needs for its growth plans. Innovation, digitalisation and research into new business models are at the forefront of Globitas’ activities and this is exactly what HEGO was looking for.
HEGO’s Commercial Director, André van der Veen, is delighted about the partnership with Globitas – the company is the perfect match: “The additional knowledge and expertise that Globitas brings to the table will allow us to accelerate our plans. In the years to come, we will expand to become one of the most important players in the stainless steel and aluminium market – in the Netherlands and beyond.”
What makes this deal so special?
The offer for HEGO was put together with Of Course Corporate Finance by advisor Edwin Haring. The Gort family, who founded the company and owned it until the acquisition, had a firm set of requirements. According to Haring: “Using Dealsuite meant that we had direct insight into who the relevant buyers were and were able to connect with an extensive M&A network,”. “It allowed us to easily contact qualified investors – even those outside of our existing network.”
It wasn’t long until multiple relevant parties responded to Haring’s teaser on Dealsuite. One of these parties was Globitas, which, according to Partner Gijs van Dam, predominantly saw HEGO’s potential to shake up the steel market. “HEGO operates in a fairly traditional market where the right innovation quickly adds a lot of value not only to the market itself, but also to the customer,” says van Dam. This deal is especially interesting for Globitas because of HEGO’s risk-return profile. The company and its ambitions are closely aligned with Globitas’ expertise in value-add buyouts.
In the end, the sellers’ requirements and Globitas’ investment needs were so well matched that a deal was soon agreed upon. “The Gort family is passing on the baton with peace of mind,” says Haring. Globitas is confidently setting course for an innovative future and in doing so is driving HEGO’s ambitions for innovation and digitalisation.