150
Employees pre-acquisition
Automotive Supplier Doubles Scale Through Strategic M&A Integration
The company faced the complex challenge of acquiring and integrating a facility that would double its operational footprint. Together, we navigated the M&A evaluation, secured €7 million in co-financing and orchestrated the integration across three manufacturing sites. The transformation expanded the organization’s automotive capabilities while safeguarding 150 jobs at the acquired plant.
Automotive and Commercial Vehicles
Private Equity
Manufacturing
Operations Strategy and Transformation
Procurement
Transactions and Turnaround
Our Client
A tier-two automotive supplier specializing in aluminum die casting and sheet metal stamping components. The company operates two manufacturing facilities in Italy, serving the automotive lighting and electronic sector. Its product portfolio includes reflectors, heat sinks and covers, with core expertise in aluminum die-casting technologies that enable expansion into the automotive propulsion components market.
2
Manufacturing plants in Italy
x2
Size increase post-acquisition
The Challenge
The company needed to evaluate the strategic acquisition of a plant in Italy, while managing significant operational and financial complexities.
- M&A evaluation complexity: The acquisition would double the company’s size both in revenue and employees, requiring thorough assessment of product costs, margins, investment plans and cash flow sustainability for the planned investments
- Integration challenges: The company needed to determine how to integrate a third plant into existing operations, reallocate production across different sites and manage the transition of products and personnel while maintaining operational continuity
- Financial structuring: Securing and structuring a €7 million co-financing deal required detailed business plan validation, investment documentation and ongoing reporting to financial institutions and stakeholders
Real Results Achieved Together
The comprehensive M&A support and post-merger integration delivered successful operational expansion and financial optimization. Working alongside the client, we enabled the smooth integration of the new facility while achieving significant cost efficiencies.
-15%
Reduction in indirect purchasing costs
€7M
Investment secured
9
Months post-merger integration support
Transformation Impact
- Preserved employment for workforce at the acquired facility
- Enabled entry into automotive propulsion segment through strategic acquisition
- Established optimized supplier base through procurement synergy analysis
Our Approach
Our engagement began with a three-month Independent Business Review (IBR), acting as a third party between the client and its stakeholders to evaluate the management’s business plan. The assessment centered around product costs and margins, investment planning and cash flow sustainability. Following investment confirmation, we provided nine months of post-merger integration support.
This included preparing documentation for the capital investment, scheduling new plant installations and coordinating production line transfers between facilities. We supported the industrialization of new products at the acquired plant, including investments in molds and production startups, with product validation processes.
A comprehensive analysis of indirect purchasing synergies pooled the supplier bases of both operations, optimizing supplier allocation and negotiation for materials including oils, lubricants, consumables, spare parts and maintenance materials. Throughout the engagement, we assisted with quarterly and annual results reporting and five-year business plan updates.
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Facing Similar M&A Integration Challenges?
- Managing the complexity of doubling your operational footprint through strategic acquisition
- Transforming M&A opportunities into sustainable growth with optimized cost structures
- Building operational excellence that preserves jobs while delivering measurable savings
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