The Gores Group, a Los Angeles-based private equity firm, through an affiliate, has signed an agreement to acquire The Hay Group, one of the leading European manufacturers of high precision forged and machined components for engines, gearboxes and axles for the automotive, commercial vehicle and have not been disclosed.
The transaction is expected to close in February of 2012, subject to customary closing conditions, including receipt of regulatory approval.
Founded in 1925, The Hay Group is headquartered in Bad Sobernheim, Germany, and has nearly 1,600 employees between its three German manufacturing operations sites (Bad Sobernheim, Bockenau and Lüchow). Part of the strategy under the new ownership of The Gores Group will be to expand its operations into Asia to meet the demands and requirements of its customers.
Professor Dr Bernd Gottschalk, Chairman of The Hay Group and Managing Partner of the consulting firm AutoValue GmbH, says: "It is extremely gratifying that we have succeeded in restoring the operating performance of Hay and in finding a new partner like The Gores Group, who will help us secure the future growth for Hay given its operational expertise and flexible and strong capital base.”
“The acquisition of The Hay Group provides The Gores Group with a tremendous opportunity to expand upon our current automotive supplier industry holdings, particularly in the provision of strategic products to key German vehicle manufacturers and other tier I suppliers,” says Fernando Goni, Managing Director of The Gores Group. “We are delighted to continue to work with Professor Dr Gottschalk and his team in taking the company into the next phase of development. This investment confirms our already strong position in Europe, as reflected by our most recent investments in Mexx, Sagem Communications, Siemens Enterprise Communications and Vincotech, these last two also in Germany.”
