Private equity firm Endless has sold part of its investment in Brabant Alucast International following a successful turnaround of the business.
Under the deal, two plants in Oss in Holland and Verres in Italy have been sold to Shiloh Industries, which specialises in lightweight technologies for the mobility market.
Brabant Alucast International (BAI) supplies high-pressure die-cast components to the automotive industry.
Endless acquired the loss-making business and its five operating sites in the Netherlands, Italy, Germany and the Czech Republic two years ago.
Since then it has introduced management changes and operating efficiencies, sorted out loss-making contracts and disposed of a Czech foundry through a management buyout.
BAI now has a turnover of €140 million (£125.4 million) and in the last two years has seen a €20 million (£17.9 million) improvement in EBITDA.
Matthew Jubb, Investment Director at Endless, said: “BAI is radically improved after two years in our ownership. We are very proud of the scale of this turnaround and the impact our investment has had at all five sites in creating factories for the future and protecting highly skilled local jobs. We believe the Oss and Verres factories have a bright outlook as part of Shiloh Industries.”
Jamie Brundell, CEO of BAI, added: “Our team members, products and technologies in Oss and Verres combined with the improved customer relationships will be instrumental in supporting the continued expansion of Shiloh Industries globally. The enlarged business is very well placed to capitalise on rising demand for lightweight metals to the global automotive industry. Manufacturers must reduce emissions and need metals like magnesium and aluminium to keep vehicle weights to a minimum.”
Endless is in talks with parties interested in buying the remaining plants at Wendlingen in Germany and Heijen in Holland.