Case STudy: JST Transformers
Lyon, France
CompanY – JST Transformers, Lyon France
Seller – Siemens
Working Capital Lender – BNP Paribas/Societe Generale
Overview before transaction:
Sales $94 Million, EBITDA Negative $3.4 Million
Siemens had 9 transformer plants and this one was facing a shut down
Purchase Transaction Date: March 2006
Purchase Transaction Key terms:
EUR 1 (one euro) in cash; no material reps, warranties, and indemnities
After the transaction:
2007 sales $112 Million; EBITDA $5.9 Million
2008 sales $128 Million; EBITDA $10.7 Million
Exit Transaction Date: August 2010
Sale Transaction Key terms:
EUR 38.25 Million = $51.2 Million in cash (as of August 2010)
Turnaround Method:
Increased marketing and sales efforts
Capital investment and equipment upgrade
Employee training and increased employee headcount
Cost controls
New customers and international development
Expansion of manufacturing footprint to India, Portugal, and Poland
