Information on the Target

The SF Tooling Group has undergone significant transformation since being acquired by CGS in 2014. Initially focused on the European market with an approximate revenue of €20 million, SF Tooling has evolved into an international entity with a strong presence in key automotive markets, including the United States, Europe, and China. Over this period, the company's revenue has more than doubled, highlighting its successful expansion strategy.

Currently, the SF Tooling Group stands as the leading provider of die-casting molds for lightweight components in vehicle bodies and electric mobility applications. With operations in North America, Europe, and China, it is uniquely positioned as the only global player in this sector. The acquisition of Schaufler Tooling GmbH & Co. KG in Germany in 2014 marked a crucial step in its buy-and-build strategy, followed by the acquisition of Fischer Tool & Die Corp. in Michigan, USA, two years later, which significantly advanced its internationalization efforts.

Industry Overview in the Target’s Specific Country

The automotive sector is currently experiencing a dynamic transformation, particularly concerning alternative drive technologies, digitalization, and autonomous driving, as well as new manufacturing processes. SF Tooling Group has adeptly navigated these changes and now generates approximately 70% of its revenue from innovative applications for structural components and electric vehicles, moving away from traditional combustion engine models.

As a leader in the industry, the SF Tooling Group is playing an active role in revolutionizing traditional vehicle manufacturing methods, particularly through its product offerings that include cutting-edge “Giga Dies.” With weights exceeding 130 tons, these dies enable customers to consolidate up to 70 welded components into a single cast part, thereby streamlining production and enhancing efficiency.

Despite the challenges the automotive industry faces, SF Tooling is well-poised to lead the market into the next phase of growth, leveraging its technological advantages and expertise in high-demand applications. The forthcoming establishment of local production in Shanghai by early 2022 will further enhance its competitiveness in the crucial Chinese automotive market.

With its successful buy-and-build strategy and ongoing international growth, the SF Tooling Group has been recognized multiple times in the World Market Leader Index by WirtschaftsWoche, affirming its status as a significant player in the global market.

The Rationale Behind the Deal

The decision to sell the majority stake in SF Tooling Group to the Swedish company Storskogen is rooted in the desire to capitalize on the strong market position established under CGS. The management expressed confidence that Storskogen, as a new owner, will effectively utilize this position to fuel further growth and address the impending global challenges faced by the automotive industry.

Antonio Cives, Managing Partner at CGS, emphasized that the groundwork laid in recent years has positioned SF Tooling for the next growth stage. This transition aims to enhance the company's capabilities in response to rapidly evolving market demands while securing a robust future.

Information About the Investor

Storskogen, founded in 2012, is an investment group that specializes in acquiring and managing well-run, profitable mid-sized companies that hold leading market positions. The company has diversified its operations into three business areas and, as of the third quarter of 2021, encompasses nearly 100 business units and around 7,000 employees, primarily located in Scandinavia, the DACH region, and the UK.

Storskogen's strategic focus on stable companies with growth potential makes it an ideal partner for SF Tooling Group as it seeks to capitalize on expanding opportunities within the automotive sector, particularly in terms of manufacturing efficiency and innovative technologies.

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From an analytical perspective, the sale of SF Tooling Group to Storskogen is anticipated to be a strategic move that could yield substantial benefits for all parties involved. Given SF Tooling's established market presence and technological leadership, Storskogen's investment may facilitate accelerated growth and further innovation, particularly in the burgeoning electric vehicle segment.

The transformation and international expansion SF Tooling has undergone under CGS's stewardship lay a solid foundation for future development. The back-end support and expertise provided by Storskogen can enhance the company's operational effectiveness while maximizing its market reach.

Moreover, the automotive industry's ongoing shift towards electric mobility and sophisticated manufacturing processes positions SF Tooling favorably. Their leadership in die-casting technologies, especially “Giga Dies,” means they are at the forefront of these changes, making them a valuable asset for Storskogen as they pursue growth in this sector.

Ultimately, this deal blends Storskogen's investment capabilities with SF Tooling's innovative potential, suggesting that this acquisition could indeed represent a wise investment decision with promising future returns.

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