HTI AG's shareholder's meeting agrees on balance sheet restructuring and capital injection
Zug (Switzerland) / Essen (Germany), 01 February 2014 – ICS PARTNERS GmbH (ICS) specialises in acquiring and operating companies experiencing exceptional circumstances, and on handling complex business transactions. The ICS team comprises experts with proven investment and transaction experience and practitioners with industry know-how. ICS focuses on the automotive industry.
In the context of this industry focus, ICS has been conducting talks with HTI High Tech Industries AG in St. Marien (Austria) (HTI) since the summer of 2013 about restructuring equities and liabilities and providing HTI with some € 26 million of fresh capital. To this end, ICS created a financing consortium with Metric Capital Partners LLP (MCP) aiming at returning HTI to growth through financial restructuring. Following intense talks with all concerned parties and especially the banks involved and the Austrian M&A Commission (Übernahmekommission), a successful solution for HTI now seems apparent. The shareholders’ meeting mentioned earlier decided on 28 January 2014 to agree to the planned capital measures. This was the last important milestone in implementing the transaction, meaning that the company can now be registered in the commercial register. The transaction will be closed presently and subsequently the company is to be delisted.
Dr Ingo Zemke, founding member and MD of ICS said, “Given the very complex starting point, the soon to be expected closing of the transaction is a huge step forward and an urgently needed act of liberation for HTI. To achieve this, various parties had to cooperate in communicating with the banks financing the project, in meeting stock exchange requirements set by the Übernahmekommission, and in getting HTI’s clients, suppliers, shareholders, and employees on board. All parties concerned were aware of their great responsibility and worked to ensure the continued existence of HTI.”
The ICS/MCP investment aims to strengthen and significantly expand the company’s skills in lightweight construction and interior design. This includes pushing thin-wall technology in aluminium pressure die casting, accelerating the expansion in plastics engineering of multi component injection moulding, in-mould decoration, or surface lacquer proficiency, and promoting the development of complex kinematics parts. Absent a substantial restructuring of current financing models, HTI would have only had very limited possibilities of acquiring new orders, pre-financing the required tool development, or making the sort of investments necessary. “HTI is not an operational restructuring case,” said Dr Zemke. “Instead we aim to sustainably expand current business areas and grow by adding new business; selected purchases are also a possibility.”
The automotive industry’s strategic goals have it saving fuel and lowering energy consumption to reduce CO2 emissions. Alternative propulsion and lightweight construction play a central role. Plastic and aluminium are thus steadily gaining in importance as frame and substitution materials. Apart from contributing to lightweight construction, plastics also play a leading role in facilitating OEMs’ desire to distinguish their products and individualise them. HTI is already active in the two pertinent areas lightweight construction and interior design. Based on market feedback, Jörg Gregel, ICS operating partner, attests HTI that “clients value HTI’s surface prowess and product quality”. “We regard manufacturing facilities and employees as valuable resources on which we can build to grow and evolve HTI”, says Gregel, underlining HTI’s competitiveness.
Investors will provide capital and additional resources and offer operational support in certain projects. On the ICS side, Carsten Paris and Jörg Gregel will head the cooperative effort with the management team run by Peter Glatzmeier and Nikolaus Kretz. Moreover, it is planned to have Jörg Gregel join HTI’s management. MCP’s John Sinik and David Scheurl and ICS’ Dr Zemke will see the investors adding their expertise via the supervisory board and putting their networks at the disposal of HTI.
Download the press release as pdf here: Press release HTI financing
ICS PARTNERS GmbH
Carsten Paris firstname.lastname@example.org
Jörg Gregel email@example.com
Dr Ingo Zemke firstname.lastname@example.org
About ICS Partners GmbH
ICS PARTNERS GmbH is a specialised and independent investment and portfolio management company wholly owned by its partners. ICS focuses on industry concepts, complex transactions, and upper-mittelstand restructurings from € 10m upwards. The ICS team comprises experts with proven investment and transaction expertise and practitioners with industry know-how and great restructuring experience. All team members exhibit a profound sense for numbers and employ a hands-on approach based on their entrepreneurial background and management experience. ICS is an active investor with a long-term orientation and aiming to increase company productivity. This includes growing equity by ploughing back profits, limiting the use of financing by way of credits, or selling material assets. Flexibility, speed, and reliability characterise the way ICS works.
About HTI HIGH TECH INDUSTRIES AG
HTI High Tech Industries AG is headquartered in St. Marien near Neuhofen in Austria. HTI is an internationally active technology company specialising in lightweight engineering and focusing on aluminium pressure die-casting and plastics injection moulding. HTI employs some 800 staff at four plants in Austria and Slovakia. HIT produces sophisticated (composite) parts and components for the automotive and aviation industries. HTI is a sought-after partner in development and its clients include renowned brands like Airbus, Audi, BMW, Boeing, Daimler, Jaguar, MAN, Porsche, Volvo, and VW.
About METRIC CAPITAL PARTNERS
METRIC CAPITAL PARTNERS (MCP) is an experienced European investor investing in mittelstand companies experiencing exceptional situations. At present, MCP is involved in 11 firms. MCP’s main investors are European and international sovereign wealth funds, family and university foundations, and European asset management companies focused on the long term.