Pitch Best Mid-Market Deal 2019: Van Leeuwen Buizen Groep – BENTELER Distribution

De beste deal van het jaar is meer dan het hoogste cijfertje in de krant en de kunst van het dealmaken is meer dan het opstellen van een contract. De Awards voor de beste deal zou dus niet alleen op de prijs van de deal gebaseerd moeten zijn, maar vooral op de – toegevoegde – waarde voor een bedrijf en de exit. 

Name of the deal:         Van Leeuwen Buizen Groep acquires BENTELER Distribution. 
Date announced:          27th of August 2019
Published value:           Between €100 million and €250 million
Buyer:                           Van Leeuwen Buize Groep
Target:                          Benteler Distribution
Seller:                           BENTELER International
M&A Database:            Bekijk de details van deze deal.            

Involved firms and advisors sell side: 
M&A:                            Goldman Sachs
Legal:                           Mayer Brown 
FDD:                             PwC 

Involved firms and advisors buy side:
M&A:                         ABN AMRO – Rutger van Nouhuijs, Geert van Roon, John Heijning, Ronald Quik, Vincent Goedegebuure, Michiel Elfring, Max Kruitwagen, Peter Boersma.
FDD:                          PwC – Chris Durieux, Nils Siekman, Ross Hart. 
Tax:                            PwC – Hans Seeling, Leonie de Haas, Laura Grosscurt.
Legal:                         Freshfields Bruckhaus Deringer – Shawn der Kinderen, Thijs Flokstra,

Pitch

Brief description deal / Deal outline:

The Van Leeuwen Buizen Group and Tube Group has entered into an agreement to acquire BENTELER Distribution, a division of BENTELER International AG with an annual turnover of about 750 million Euro (2018). This strategic acquisition will provide Van Leeuwen access to additional key markets in Europe, and will contribute to improving its position as a leading distributor of pipe and tube materials in Europe.

Deal rationale:

• Van Leeuwen’s size to double in turnover and number of employees.
• Access to important markets in Germany, Scandinavia, Switzerland, and Central Europe.
• Extensive distribution network expanding range of products and value added services.
• In line with the ongoing consolidation wave in this sector (with low margins and economies of scale are important).

What is the impact of this deal for the company?

• Van Leeuwen’s size to double in turnover and number of employees.
• Access to important markets in Germany, Scandinavia, Switzerland, and Central Europe.
• Extensive distribution network expanding range of products and value added services.
• Game changing event, significant transaction (largest ever) for this family owned company.
• Unique opportunity to acquire a company that, in terms of revenue, is equal or somewhat larger than the company itself.
• Huge step forward for this great company.

What is the impact of this deal for the direct stakeholders?
Van Leeuwen is a family owned business, and expects the acquisition to contribute to its position towards clients and suppliers. At the same time, the disposal by BENTELER International allows it to increase its focus on its core business, the automotive division, which accounts for approximately 80 percent of the group’s turnover.

What is the impact of this deal on the society?
The scale of the combined companies will enable further development of innovative solutions for customers, optimized and specialized stocks with proximity to the customers, and investments in IT-supported customer interfaces and effective distribution. Including also further optimisation of this industry and benefit from the economies of scale that will result in positive impact on sustainability investments by the firm and its customers.Lastly for the employees of both the buyer and target, this is a significant positive sign towards a bright future.

Why does this deal deserve a nomination?

• The acquisition is the result of a complex, cross-border process, involving teams in both Germany and the Netherlands advising on M&A, tax, financing and regulatory matters, and is a reflection of the rapidly changing markets in the pipe and tube industry.
• Significant, impactful transaction by a Dutch, family owned company
• Does not happen so often for Dutch companies to acquire large German companies that are even bigger in size
• Company to double in turnover and number of employees
• In line with the ongoing consolidation wave in this sector (with low margins and economies of scale are important).
• Not the most easy one but by far the most interesting and powerful transaction of a still family owned companies in the Netherlands we should be very proud on.

Comments Panel of Judges:
‘Coole deal, ballsy move’ klonk het bij het juryberaad. Dat het familiebedrijf Van Leeuwen Buizen plots twee keer zo groot werd door de overname van Benteler kon rekenen op veel bijval van de jury. Ook de professionaliteit van het dealproces, mede gelet op het cross-borderaspect, viel de jury op. 

Belangrijke note: Koos Breen, als voormalig CEO van Van Leeuwen Buizen, onthield zich als jurylid van stemmen bij het bepalen van de score van deze deal.