AMR International advised ActoMezz / ACG Capital in its investment in Holding VM Industries Group (former Molex), an electrical components manufacturer dedicated to the automotive industry
Using the extensive knowledge of our industrials practice, we validated the critical questions underlying ACG’s investment thesis:
- Can HVMI generate attractive investment returns?
- The group’s largest asset consistently outperformed competitors since 2011 by strategically focusing on growth segments in largely stagnating underlying markets
- AMR validated the sustainability of the target’s growth trajectory, based on its solid competitive advantage derived from superior quality and flexibility in product customization. These will continue to drive high customer retention and market share gain
- AMR also demonstrated that there was room for further revenue upside by accompanying customers in their international operations and by more focused targeting of specific growing market segments
What are the most significant risks associated with the investment?
- The risk of value chain disintermediation is greatly reduced by the target’s cost-effective production capabilities, specialist know-how and joint investment in product development alongside loyal customers
- Innovative product co-development and a focus design also protect the company from product commoditisation
How AMR can help
AMR combines over 25 years of expertise in niche manufacturing M&A and strategic advisory with in-depth primary research to deliver unbiased and actionable recommendations.
For more information on how AMR can support you with M&A advice and growth strategy, please contact Denzil Rankine