Reference project in the electric tools sector
WINTERGERST assists TTS Tooltechnic Systems during the carve-out
TTS Tooltechnic Systems has a number of investment holdings in firms and companies, predominantly in the power tools sector under the core brand of FESTOOL. NAREX s.r.o., whose origins date back more than 100 years with the production of power drills under the Siemens brand, is today the leading brand for power tools in the Czech Republic.
Carve-Out
EUR > 10 million
2024
Electric tools
Baseline
NAREX, the long-established Czech machine tool brand based in Česká Lípa, had been part of the German company TTS Tooltechnic Systems since the privatization of the former state-owned enterprises following the opening of Eastern Europe. Due to increasing competitive pressure from Asia, the synergistic benefits of the network of plants with the German parent company gradually diminished. As a result, TTS Tooltechnic decided to divest itself of NAREX s.r.o.
Challenge
WINTERGERST’s task was to find an investor capable of independently expanding the NAREX brand in the Czech Republic and Slovakia, as well as further developing the established OEM/ODM sourcing strategy for machine tools from Asia. Due to the highly competitive B2C market environment, there were specific requirements regarding the confidentiality of the investment process, which necessitated a careful selection of potential investors.
Solution
Following the development of a standalone business plan and carve-out concept, supported by WINTERGERST, a selective bidding process focused on strategic investors from the Czech Republic was initiated. In Schipro s.r.o., an investor was found for NAREX who, leveraging its extensive market knowledge, seized the opportunity to further expand the long-established NAREX brand in the Czech Republic.
„The transaction process for NAREX s.r.o. was particularly challenging due to the competitive market and adverse environment. In spite of these factors, we were able to find the optimal solution for the company, its workforce and the location itself in the course of a competitive bidding process.“
Stephan Leibold
Managing Partner of WINTERGERST Societät für Unternehmer-Beratung GmbH & Co. KG