Target: Sistema Centrales de Lubricación
Transaction Type: Sell-side Advisory
Industries: Industrials
Geography: Mexico City, Mexico

Situation

Seale & Associates was retained by the majority owners of Sistemas Centrales de Lubricacion, a leader in the reconfiguration of the tribo-thermo-dynamic processes of the energy Industry’s dynamic equipment to advise on the sale of their shares in the company to their minority partner Colfax Corporation. The majority shareholder had attempted to do the same transaction in the past without success.

Seale & Associates’ Approach

Seale performed a comprehensive valuation study of the company and ran a disciplined sale of the shares of the majority owners to their minority partner. Seale positioned the transaction value by clearly outlaying the benefits and synergies that the minority partners would obtain by closing the proposed transaction.

Outcome

The process resulted in the successful sale of the majority owners’ shares to their minority partner at a fixed price that considered the historical performance of the company plus a variable price that would consider the earnings achieved by the company in the years following the transaction.