When asked what made the sale of German Liquified Petroleum Gas (LPG) company WESTFA Energy GmbH to Mabanaft GmbH & Co. KG (Mabanaft) unique, we introduced the parties to one another.
This was the sale of one of the largest independent German energy producers which would normally be destined for one of a few seasoned buyers in the LPG space. But to open up the competitive process, we went beyond the norm to find the perfect partner.
So, what was the context and how did we maximise the value of WESTFA Energy?
But to open up the competitive process, we went beyond the norm to find the perfect partner.
Maximising strategic positioning by tapping into market forces
At the time of transaction, German industry was in turmoil. Industry experts and policymakers debated what the future of the country’s energy system could look like. The public questioned whether they would continue using gas boilers in their homes.
Against the backdrop of an uncertain future, investors were reticent. But we knew we were handling the sale of a company with a place in Germany’s future energy mix. Our role was clear: to show investors how the market environment could be helped to stabilise with the help of WESFTA Energy.
Through careful communication and a clear understanding of market drivers, we reduced the risk from an investor perspective and managed to secure an attractive offer at market conditions for our client.
Seven months on, a 100 per cent sale was agreed with both WESTFA founders and Mabanaft pleased with a successful outcome.
Increasing competition with a different buyer
WESTFA Energy was a family-owned business, with multiple generations of heritage. Part of the larger Adeleon Familienholding GmbH (Adeleon) companies, formerly WESTFA Holding GmbH, the owner wanted to spin off the business to allow them to pursue new interests.
The target timeline? The family were clear that they were keen for a sale by the end of the year which gave us seven months to complete the process.
Those with sector knowledge would have pointed to a small group of prospective international buyers as likely candidates for this sale. Many would have said the only candidates.
However, we were able to identify a different buyer. Mabanaft, a Hamburg-based integrated energy company looking to further strengthen their position in north-west Europe and drive the energy transition, also with the help of green molecules, i.e. renewable gas-based energy sources.
We introduced Mabanaft as a potential buyer and made the synergies become obvious. We could see that WESTFA would deliver an opportunity for Mabanaft to tap into their loyal customer base; continue to develop relationships in the heating and mobility sectors; and diversify their energy solutions to become even more sustainable.
The Clearwater difference
1 Going beyond the norm to find the right buyer
2 Developing strategic positioning that tapped into the market context and drove a competitive price
3 Completing the deal within a specific timeframe
Clearwater Advisers
Success stories
