Funds managed by Finnish private equity fund manager Capman and the Finnish metal company Rautaruukki are forming Europe’s largest system and component manufacturer for the mechanical engineering industry. In the asset deal Rautaruukki’s engineering division will be combined with Komas, a system supplier for the engineering industry owned by CapMan, to create a new company called Fortaco.
“The transaction enables us to form a highly competitive company with state-of-the-art manufacturing operations in Finland, Poland, Estonia, Hungary and Slovakia. As a consequence, we are able to offer flexible and high quality services to customers both in the Nordic countries and in Continental Europe,” says Jan Mattlin, Partner, CapMan Buyout.
According to CapMan, Fortaco’s customer base consists of the world’s leading engineering OEM’s, which will benefit from a broader product and service offering. The company’s main products are high-performing welded and machined components, ready-to-install operator cabins and fully-assembled machines and equipment.
In 2012, Fortaco is expected to generate turnover (pro forma) of approx. €270 million and will have approximately 2,600 employees. The new company is formed through the combination of compatible and complementary units of Rautaruukki and Komas. Komas units in Jyväskylä will not be part of Fortaco and will continue to operate as an independent company under CapMan’s and other present ownership.
Following the completion of the transaction, CapMan will become Fortaco’s largest shareholder with a 66.5% stake in the company. Rautaruukki will hold 19.0% of the company’s equity.