Houlihan Lokey Advises Showa Denko Materials

Houlihan Lokey is pleased to announce that Showa Denko Materials Co., Ltd. (SDMC), the Japanese materials technology specialist and member of the Showa Denko Group, has divested its subsidiary ISOLITE GmbH (Isolite) to Germany-based investment firm CERTINA Automotive Products AG and its parent company, CERTINA Group (Certina).

Headquartered in Ludwigshafen, Germany, Isolite is a leading European manufacturer of tailor-made, technically sophisticated, high-temperature insulation and sealing systems for the world’s leading industries. Isolite employs more than 270 people, mostly based in Germany and North America, where it operates a number of manufacturing facilities. Key customers are tier 1 manufacturers, original equipment manufacturers (OEMs) in the automotive industry, as well as leading aircraft and engine manufacturers, and other clients with relationships spanning more than 10 years.

Grünwald-headquartered Certina is a family-owned industrial holding company focusing on the acquisition and development of European small and medium-sized enterprises in transitional and special situations. The company currently owns nine portfolio companies in the industrial technology and automotive mobility sector. Certina has extensive industry expertise, holds long-lasting relationships with relevant OEMs, and has significant experience with successful turnarounds in difficult situations.

Houlihan Lokey served as the exclusive financial advisor to SDMC. The deal highlights the firm’s deep automotive sector expertise, cross-border efforts, and its ability to identify suitable investors in special situations. Additionally, this transaction marks the first Houlihan Lokey and ex-GCA Japan mandate.