Sale of the intellectual property of Ernst Koch GmbH & Co. KG to the Italian MFL Group

Ernst Koch GmbH & Co. KG

Ernst Koch GmbH & Co. KG was originally founded in 1921 and it is one of the leading companies for wire-processing systems that is specialised in the development, manufacture, and sale of custom-designed machines and systems. In particular, Ernst Koch GmbH & Co. KG benefits from extensive expertise in project and process management and from its approach to develop individual customer solutions. The focus of the business is mainly on the complex project planning and implementation of customer-specific production lines in the wire drawing industry. In 2018 the company generated a turnover of around € 36 million.

Entire Sales Process

On 5th August 2019, the management of Ernst Koch GmbH & Co.KG filed for insolvency at the district court in Hagen. By decision of 5th August 2019, the district court of Hagen appointed Dr. Markus Wischemeyer from White & Case LLP insolvency administration as (preliminary) insolvency administrator. By order of 1st November 2019, the insolvency proceedings concerning the assets of Ernst Koch GmbH & Co. KG were opened by the appointed insolvency administrator Dr. Markus Wischemeyer.

On 20th January 2020, the purchase contract was signed by the MFL Group headquartered in Molteno, Italy.

The team of CVM Capital Value Management GmbH around managing partner Christian Lützenrath was mandated on 21st August 2019 by the management of Ernst Koch GmbH & Co. KG and by the preliminary insolvency administrator Dr. Markus Wischemeyer to conduct a structured investor process in consultation with the parties involved. Due to the successful collaboration with White & Case LLP insolvency administration and the management of Ernst Koch GmbH & Co. KG, CVM has successfully sold the intellectual property to the MFL Group from Molteno, Italy.

The MFL Group is an industrial group headquartered in Molteno (Italy), which can look back on 120 years of company history. The MFL Group designs and builds high-quality, high-performance wire drawing, stranding, screening, reinforcing and extrusion machines for the production of wires, cables and ropes. Over the past 30 years, the group has invested heavily in the development of new products and services to offer customised solutions for the wire and cable industry. The machinery of the MFL Group machines is manufactured under six brands: Mario Frigerio, Frigeco, Koch, Caballé, Om Lesmo and Eurodraw Energy.

Capital Value Management GmbH (“CVM”) provides operational and independent corporate finance consultancy to companies going through transitional or restructuring processes as well as other exceptional situations. CVM has offices in Dortmund and Berlin. CVM’s focus is on guiding the transactions of medium-sized companies in industry, trade and services with a sales volume between € 10 and € 250 million. CVM designs, supports and coordinates the entire M&A process in close cooperation with the clients’ tax and legal advisors.

The White & Case LLP insolvency administration is an international law firm with extensive insolvency and restructuring practice and is one of the leading insolvency administrator firms in Germany. Nationwide, White & Case is represented by a renowned team of 16 insolvency administrators and more than 200 employees at over 20 locations. During more than 30 years of service, White & Case has proven its legal and business know-how in more than 10,000 insolvency proceedings - from companies of all sizes and in all industries.