Transaction

The Israeli IMC Group (Iscar Metalworking Companies) acquires a share in the Hamburg tool management company KROMI Logistik AG via a 10% capital increase, with an exclusion of subscription rights. On completion of this PIPE transaction, IMC holds 9.09% of the company’s share capital. In addition, both companies have resolved to cooperate comprehensively at an international level.

IMC Group is an 80% majority shareholding of the US investment group Berkshire Hathaway with the remaining 20% being owned by the Wertheimer family. IMC operates in more than 65 countries and combines several well-known tool manufacturers under one roof, including Iscar, Ingersoll, Tungaloy, TaeguTec as well as highly specialised niche suppliers such as IT.TE.DI., Unitac, UOP, Wertec and others.

KROMI expects a significant expansion of its business potential and a strengthening of its international strategy as a result of the cooperation.

Target Company

KROMI Logistik is listed in the Prime Standard segment of the German Stock Exchange, offering complete manufacturer-independent tool management (outsourcing the supply of precision tools) to national and international customers. This service focuses on technically demanding machining tools (wear and carrier tools such as drills) for metal and plastic machining. KROMI combines classical tool trading with decentralised tool management in the form of automatic dispensers in clients’ production areas and an IT-based tool management and controlling system.

Key Facts

The role of Network Corporate Finance

Network Corporate Finance advised KROMI Logistik AG on the preparation and execution of the transaction. Previously in 2007, Network Corporate Finance had advised on the company’s IPO on the Prime Standard segment of the Frankfurt Stock Exchange.