LONDON – May 30, 2008 – Stockholm-based Haldex AB (STO:HLDX), a provider of proprietary and innovative technology solutions to the global vehicle industry, has completed the acquisition of Concentric plc, a world-leading supplier of oil, water and fuel pumps for diesel engines, from Bridgepoint Capital, the leading European private equity group. The transaction was completed following approval by the German competition authority.
The purchase price was approximately £75 million ($150 million), plus the assumption of Concentric's pension-fund deficit. Concentric will form part of Haldex’s Hydraulic Systems Division.
McGladrey Capital Markets LLC (formerly RSM EquiCo Capital Markets) initiated the transaction, sourced the target, led the negotiations and acted as exclusive financial advisor to Haldex. Drawing on its extensive relationships in Europe, McGladrey Capital Markets enabled Haldex to preempt the sales process of Concentric. Mannheimer Swartling in Sweden and Wragge & Co. in the United Kingdom acted as the legal advisors to Haldex. Ernst & Young (Birmingham office) carried out the financial due diligence.
“This was a very important transaction for Haldex,” said Paul Teuten, managing director, McGladrey Capital Markets. “Concentric’s strong position in markets for oil, water and fuel pumps will sharpen Haldex’s focus on leadingedge technology and growth within structurally attractive market niches. Moreover, it clearly demonstrates that strategic deals can still be completed -- even in the face of uncertain market conditions.”
Hector J. Cuellar, president, McGladrey Capital Markets, said the transaction underlines his firm’s growing global capabilities. “This was a major European-originated and executed transaction that involved multiple locations in North America, Europe and Asia. We are convinced that international transactions will play an increasingly important role in our future growth.”
About Haldex AB
Haldex (www.haldex.com) is a provider of proprietary and innovative solutions to the global vehicle industry, primarily focusing on products in vehicles that enhance safety, environment and vehicle dynamics. Haldex, headquartered in Stockholm and listed on the Stockholm Stock Exchange, has an annual turnover of 8 billion SEK ($650 million). Haldex has more than 20 manufacturing sites worldwide and has organized its operations into four business areas: Commercial Vehicle Systems; Hydraulic Systems; Garphyttan Wire; and Traction Systems.
About Concentric plc
Concentric plc (www.concentric.co.uk) is a major supplier to the world’s diesel engine manufacturers, supplying oil, water and fuel transfer pumps, as well as coolant pumps and fan-support brackets for transmissions and compressors. End applications range from trucks and buses to materials handling, construction, agricultural and off-highway machinery. Concentric has factories in the United States, India and China, as well as in the United Kingdom.
About McGladrey Capital Markets
McGladrey Capital Markets LLC (www.mcgladreycm.com) is a global provider of investment banking services to private and public companies with annual revenues of up to $1 billion. The firm’s services include mergers, acquisitions, divestitures, recapitalizations, capital raising, fairness opinions and restructurings. McGladrey Capital Markets, which offers in-depth expertise in 12 distinct industry sectors, brings together companies, capital and creativity on a national and international scale to help clients achieve their personal and strategic objectives.
McGladrey Capital Markets is affiliated with RSM McGladrey Inc., a professional services firm providing accounting, tax and business consulting. Both firms are units of H&R Block Inc. (NYSE: HRB), the world’s preeminent tax services provider.
McGladrey Capital Markets’ international headquarters are located in Costa Mesa, Calif. It also has offices in Chicago, Boston, New York and London. The firm is a member of FINRA and SIPC.
McGladrey Capital Markets has established a leading position in trans-Atlantic and cross-border mid-market M&A transactions, advising on both the sale and purchase side. The firm’s European team, which is based in London, acts as the hub for McGladrey Capital Markets’ international dealflow.