RCP Technology GmbH, a portfolio company belonging to financial investor Radial Capital Partners, has acquired the entire Powertech business unit from Knorr-Bremse Systeme für Schienenfahrzeuge GmbH and Knorr-Brake Holding Corp. (hereinafter referred to as “Knorr-Bremse”). All global business activities and staff within the Powertech business unit are being taken over as part of the transaction. Allowing for the capital resources required for the transaction, deconsolidation effects, and further transaction-related one-off expenses on the part of Knorr-Bremse, a one-off exceptional charge of just under EUR 80 million in total will be charged to the seller.
FMDH provided extensive legal advice when the transaction was being prepared, negotiated, and executed. The attorneys at FMDH have a long-standing partnership with Radial Capital Partners. They most recently advised Radial Capital Partners on the acquisition of SIK Peitz GmbH from Bilfinger.
Background information: With 526 employees, the Powertech business unit manufactures power supply systems for rail vehicles and industrial applications. In 2018, the business unit reported revenues of approximately EUR 90 million and a result (EBIT) of EUR –19 million. The product portfolio comprises converters and electrical equipment for rail vehicles, as well as for power generation and energy storage systems, a wide range of industrial applications, and highly dynamic engine and transmission test benches. The business unit includes three companies in Germany – Knorr-Bremse Powertech GmbH, Knorr-Bremse Powertech GmbH & Co. KG, and Knorr-Bremse Powertech Verwaltungs GmbH – as well as Knorr-Bremse Powertech Corp. in the United States and other business activities in Australia, Spain, and the People’s Republic of China.
Involved Lawyers:
Florian Fischer (M&A, Corporate/Lead, Partner)
Dr. Moritz Klein (M&A, Corporate/Senior Associate)
Dr. Sarah Boisai (M&A, Corporate/Associate)