STARCO divests major part of its aftermarket business to German Bohnenkamp – Clearwater International advises

Clearwater International Denmark acted as financial advisor to the owners of STARCO in the divestment of major parts of their aftermarket business to German Bohnenkamp.

The STARCO Group has been family owned and expanding for more than 55 years. Today, STARCO has more than 700 colleagues, is represented throughout Europe and has an international manufacturing, assembly and distribution setup. The company delivers tyre and wheel solutions for a wide range of applications worldwide to manufacturers and aftermarket customers – from the smallest wheelbarrow tyre to the largest agricultural or industrial wheels. The STARCO Group had a turnover of more than 140 million Euro in 2015.

Founded in Osnabrück in 1950, the Bohnenkamp Group is one of Europe’s leading wholesalers and distributors of tyres and wheels for equipment in the agricultural, industrial and earthmoving industries as well as for trucks and trailers. Bohnenkamp AG will take over STARCO’s Eastern Group (Russia, The Baltics,Ukraine etc.) and STARCO’s aftermarket business in Scandinavia, Benelux and Germany. With this step, Bohnenkamp will significantly extend its product range in small tyres, and will increase its market for its existing products. At the same time, STARCO will take over Bohnenkamp’s original equipment business in ‘passenger car trailer tyres’ in Germany and Slovakia, thereby significantly strengthening its existing range in this key segment. STARCO will continue their aftermarket business in the UK, France, Poland, Switzerland and South Africa as before. Take-over of operational business is planned for 1 July, subject to approval by the relevant authorities.

“We started the dialogue more than a year ago. With this ‘strategy of strengths’ both companies forge a path which has been developed and negotiated with and by the Chairman and principal shareholder of STARCO, Peer Ejlersgaard, who recently passed away.”

Gregor Rüth, Chief Executive Officer (CEO), Bohnenkamp AG

“It is with respect for Peer’s legacy that we now take a significant step in the direction we started shaping after Richard Todd was appointed CEO in 2015. We have been looking forward to developing the organisation to stand stronger in a highly competitive market that requires a higher level of specialised knowledge within each of our segments.”

Carl Evald Bakke-Jacobsen, Chairman, STARCO Europe A/S

“This change enables us to focus on supplying and servicing our original equipment manufacturer customers with clever wheel and tyre solutions, and an aligned aftermarket strategy in our remaining markets. With our new customer-focused organisation we will set new standards in our key segments based on the strategic investments made into manufacturing and development over the last 10 years.”

Richard Todd, CEO, STARCO

“We are delighted to have advised STARCO on this complex transaction, with divestment and de-merger of several entities in 10 different countries (Denmark, Germany, Russia, The Baltics, Belgium etc.). The divestment included a major part of the aftermarket business of STARCO Group, a business area with global presence and attractive margins. We are certain that both STARCO and Bohnenkamp will benefit from the transaction, and we wish them all the best in the future.”

Carsten Rydahl, Associate Partner, Clearwater International