Houlihan Lokey Advises Shinagawa Refractories
Houlihan Lokey is pleased to announce that Shinagawa Refractories Co., Ltd. (Shinagawa) has acquired Gouda Refractories Group BV (Gouda) from Andus Group BV, a portfolio company of Gilde Equity Management, for a purchase consideration of EUR144 million, valuing the company at EUR162 million on a debt-free, cash-free basis.
Established in 1875, Shinagawa is a global leader in refractory products for the iron, steel, energy, and cement industries. Headquartered in Tokyo and listed on the Tokyo Stock Exchange, Shinagawa is also a leading producer of insulating materials, ceramic fibers, and fine ceramic products for a variety of end markets and offers a range of refractory-related engineering services. Shinagawa is an affiliate company of Japanese steel and engineering company JFE Holdings, one of the world’s largest steel companies with revenues of c. JPY5,175 billion (c. EUR33 billion) and 64,000 employees worldwide. Shinagawa achieved revenues of c. JPY144 billion (c. EUR920 million) for the year ending 31 March 2024. Shinagawa employs c. 3,300 people globally with manufacturing plants in Japan, China, Indonesia, Australia, the U.S., and Brazil.
Founded in 1901 and headquartered in Gouda, Netherlands, Gouda is a leading global supplier of high-quality white refractory products and a provider of refractory installation and services in Northwestern Europe. Gouda is one of the few full-suite white refractory solution providers that offer a variety of end markets, including nonferrous metals (such as aluminum), petrochemicals, waste-to-energy, iron, steel, cement, and paper. Gouda generated revenues of EUR104 million and EBITDA of EUR15 million in the fiscal year ended 31 December 2023.
This transaction marks Shinagawa’s full-scale entry into the refractories market in Europe, the Middle East, and Africa, following the acquisitions of Saint-Gobain’s refractory business in Brazil and its wear-resistant ceramics business in the U.S. in December 2022, as well as the expansion of its Indonesian business announced in March of this year. In addition to providing Shinagawa with state-of-the-art manufacturing for premium white refractories and high-value service capabilities in Europe, Shinagawa will establish a leading presence in the supply of refractory products for the nonferrous metal, petrochemical, and waste-to-energy markets through this acquisition.
Houlihan Lokey served as the exclusive financial advisor to Shinagawa, following its advisory for the acquisitions of Saint-Gobain’s businesses in Brazil and the U.S. The transaction further demonstrates Houlihan Lokey’s extensive expertise in the metals and engineered materials sector and its leading position in supporting Japanese corporates in their overseas expansion.
RELATED: Financial Sponsors Coverage, Metals and Engineered Materials