The SHW Casting Technologies GmbH & Co. KG plant in Königsbronn, Germany has found a buyer. Talks with several interested parties concerning the two additional sister companies in Wasseralfingen and Königsbronn are also underway.
The plant in Königsbronn will be taken over by the Rheinische Mittelstandsbeteiligungs GmbH (RMB). The new company will operate under the name SHW High Precision Casting Technologies GmbH. The purchase price was not disclosed by the company. The purchase agreement was signed in April, but the acquisition is subject to two conditions, including the conclusion of a new collective agreement with the union IG Metall. All 163 employees should be able to continue working at the plant.
The RMB is a strategic investor with experience in the foundry industry. The investor wants synergies between his existing portfolio companies and SHW, especially in sales and administrative activities.
The long-established company had to file for bankruptcy in 2013. Since July 2017, all three SHW Casting Technologies companies and the holding company have been self-operating, and despite the renewed insolvency, it has been possible to set up the company in Königsbronn so that it can operate successfully again. Since the application for insolvency in 2017, the business operations of the foundry company have continued uninterrupted.
Plant profitable again
There are renovation measures at the plant in Königsbronn currently taking place: In addition to improved controlling and optimized cost center accounting, sales activities were stepped up, which is reflected in a high order backlog of around 15 million euros. The company in Königsbronn recently returned to profitability. For 2018, sales of around 28 million euros are expected, compared to 25 million euros in 2017.