Shearman & Sterling advised financial investor Intek group and KME Special Products GmbH & Co. KG, a subsidiary of KME SE, on an investment in the Special Products business unit by Paragon Partners. Special Products will be contributed to a newco, owned 55% by Paragon and 45% by KME group. The joint venture structure enables KME to hold a participation in the newco, although focusing on their group strategy to expand the rolled products business.
With a commercial presence in over 70 countries, KME Special business has a highly recognized worldwide leadership in the production of copper moulds for the global steel industry as well as in the manufacturing of high corrosion resistance products mainly used in the naval and petrochemical industries. Perimeter of the transaction includes four manufacturing plants (based in Germany, Italy, US and China) as well as seven fully dedicated service centers (based in India, Mexico, Turkey, Spain, Russia and Ukraine) with over 1000 employees worldwide, revenues of around €260 million and Ebitda of around €44 million in Y2020.
The Shearman & Sterling team led by Florian Harder only recently advised financial investor Intek and KME Mansfeld on the sale of the wires business to Elcowire.