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Reorganization of cold-rolling mill company Theis

Case Study

Challenge

As a result of the financial crisis, the Theis Group developed liquidity problems and filed for insolvency. A reorganization plan needed to be compiled and implemented to rescue the company and its subsidiaries. 

Success

Thanks to the reorganization measures introduced by Atreus, savings in the high single-figure millions could be achieved and all customers of the cold-rolling mill company retained, even in the critical phase of the reorganization. 

Interview with Michael Mittelstaedt, CEO of Theis

Why did Theis Kaltwalzwerke GmbH hire an interim manager?

After filing for insolvency, a social plan had been drawn up to gain liquidity for the company and enable it to survive in the short term. But there was still no actual plan for the reorganization. After the owner parted with the previous management, the legal firm advising it looked for an experienced restructurer to draft and execute that plan. 

 

"Theis needed an excellent reorganization plan, not only for the insolvent parent, but also for the 13 international subsidiaries."

You want to know what Atreus can do for you in a similar situation?
Contact Rainer Nagel, CEO.

+49 89 452249-400 Rainer.Nagel(at)atreus.de

What measures did Atreus introduce?

The start was a situational analysis of the technical and financial situation of Theis Group, which provided the basis for the reorganization plan. Around 100 different individual measures were taken for reducing costs alone. These led to annual savings in the high single-digit millions in the head office in Hagen, for example. In a short period of time, the Theis Group returned to an EBITDA in the high single-digit percentage region. It also succeeded in keeping all its customers, which is not a matter of course in an insolvency.

The company was to be sold after the reorganization. Was the M&A process also the responsibility of the Atreus manager?

The Atreus manager was definitely intended to support and coordinate it. This encompassed preparing the due diligence process, including the presentation of the Theis enterprises and answering the question catalogs from potential buyers. The decisive thing in the M&A process, however, was that the reorganization had given Theis intrinsic value again.

"Our reorganization plan worked. At the head office in Hagen, we realized annual savings in the high single-digit millions."

Michael Mittelstaedt studied industrial engineering and then held management positions at VIAG AG and Edscha AG. Since 2007, he has been active in the automotive components supply industry as an interim COO and MD, with a focus on cross-border insolvencies. From January to October 2012, he was CEO of Theis Group.

Michael Mittelstaedt

Michael Mittelstaedt studied industrial engineering and then held management positions at VIAG AG and Edscha AG. Since 2007, he has been active in the automotive components supply industry as an interim COO and MD, with a focus on cross-border insolvencies. From January to October 2012, he was CEO of Theis Group.

How much mediation work did the interim manager have to do between stakeholders?

A lot. The main creditors all had different wishes. One bank wanted to sell to the highest bidder while another wanted the company to be kept alive. The owner wanted to keep the company whole and lose as few shares in it as possible. But despite this, everyone involved maintained their trust in each other. That became apparent when the Supreme Court removed the self-administration.

Was the commission originally intended to last so long?

Originally, the plan was for it to be much shorter. But the procedure dragged somewhat and the M&A process proved to be difficult, so the contract was extended by half a year. In the end, we were able to announce the majority acquisition by FNsteel Group, part of the investment group Hombergh Holdings BV. The creditors and trust authorities also approved the purchase and the insolvency procedure was completed. The new owner then asked the interim manager to take on the permanent management of Theis Kaltwalzwerke GmbH, which he did.

"Despite tough and emotional agreement processes, the base of trust between stakeholders was kept intact."

Atreus is the leading interim management provider in Germany and one of the largest in its field in Europe. We solve difficult operational management and transformation problems quickly and reliably. Contact us and find out how we can help you master your situation with management expertise that is available at short notice and that is the perfect fit for you.

Atreus is a co-founder of Globalise – the market’s leading and largest provider of international interim management. Accelerating change and delivering success. Worldwide. Structured as a global group of leading interim management firms, Globalise has the reach to support you in solving your company’s most important issues around the world.