The Morgan Crucible Company

Background

Based in the UK, The Morgan Crucible Company Plc is a global manufacturer of a range of carbon, ceramic and magnetic products for the automotive, medical, general industrial and communications industries. The company is in the process of implementing its strategy, which includes disposing non-core businesses to simplify and focus the group. KPMG Corporate Finance was engaged to sell the Global Auto and Consumer business that was no longer viewed as a core service offering.

• the Auto and Consumer business manufactures a wide range of carbon brushes, commutators and energy systems for consumer, automotive and applications with operations in the U.S., Brazil, China, Korea, the UK and Italy.

The Situation

The business was not a separate legal entity and the operations of the business had to be carved out and presented to the potential buyers. Given the international nature of the transaction, potential financial buyers would need a clear understanding of how to take a complex international transaction to a successful close.

The Solution

KPMG Corporate Finance worked with the management of The Morgan Crucible Company to identify the optimal buyer for this business. KPMG Corporate Finance assisted in coordinating global due diligence, management presentations and negotiations across the various countries. A successful leveraged buyout was negotiated with MidMark Equity Partners, a New Jersey-based private equity fund, HSBC Private Equity and Key Capital Partners. We advised the company throughout the transaction life-cycle, with a particular emphasis on maintaining value, and assisted in bringing it to a successful conclusion.