Target Lorch Schweißtechnik GmbH
Deal Type Mergers & Acquisitions
Buyer DAIHEN Corporation
Transaction Description

Lorch Schweißtechnik GmbH is a leading manufacturer of arc welding equipment for industrial applications, high-end metalworking applications and the integration of automated arc welding in robots and collaborative robotic systems. For more than 65 years, Lorch has been manufacturing high-quality welding solutions in one of the most modern production facilities for welding systems in the world today, exporting its products to over 60 countries. Due to its extraordinary technological competencies, which are manifest in top-of-the-range process technology, intelligent software, high-quality components and 16 patents, Lorch has been able to establish itself as one of Swabia’s hidden champions. With 7 sales and distribution companies located around the globe and over 400 distribution and service points, Lorch exports to over 60 countries.

The family-owned company has been managed by its managing shareholder, Wolfgang Grüb for over 40 years and, under his leadership, has grown from 3 to roughly 280 employees. Wintergerst Societät für Unternehmer-Beratung provided extensive support during the process to find a solution to the company’s succession issues. These entailed being a sparring partner and examining various options for shaping the company’s succession before conducting an internationally-aligned M&A process.

An ideal partner for the strategic development of Lorch moving forward has been found in the form of the Japanese DAIHEN Corporation. The DAIHEN Corporation is a global player with over 3,800 employees and annual revenue of approximately EUR 1.2 billion. In its OTC Daihen segment, Daihen is one of the world’s largest manufacturers of robots, arc welding and plasma machines and the associated automation technology. As a result of its high level of technological competence, a firmly established distribution structure in the Asian market and high potential synergies in robotic technology, OTC Daihen was identified as an ideal partner for Lorch and managed to prevail over the competition in an international competitive bidding process.

“With LORCH we have won a European partner with whom we can jointly develop products standing as peers. This will definitely bolster our position as technology leader,” assures Shoichiro Minomo, CEO and President of the DAIHEN Corporation.

“This successful transaction serves as a type-model for our broad suite of services. As a reliable sparring partner, we were able to support Mr. Grüb at considering all the aspects of a solution to the company’s succession issues and follow this up with a competitive investor search using our international network and our M&A competencies, which culminated in a successful transaction,” says Volker Wintergerst, founder and managing director of Wintergerst Societät für Unternehmer-Beratung.

“I am happy that, with the team of experienced and professional M&A consultants from Wintergerst at our side, we were able to conduct a successful competitive bidding process largely thanks to the depth of its experience with a Japanese buyer. As a trustworthy and reliable partner, Wintergerst supported me with the entire process of finding a solution to the succession issues facing the company,” explains Wolfgang Grüb, CEO and sole shareholder of Lorch Schweißtechnik GmbH.

“The high level of motivation and close cooperation between our team, Mr. Grüb and the full management team at Lorch meant that we were able to maintain the intensity of the competitive bidding process right to the very end, and guarantee the success of the project,” adds Christian Scharfenberger, who handled the operating side of the project at Wintergerst together with Simon Ulmer and Vincent Buhl.

Industry Sector
ICFG Office

ICFG Germany assists the sale of Lorch Schweißtechnik GmbH to the Japanese DAIHEN Corporation

Transaction Details

Lorch Schweißtechnik GmbH based in Auenwald becomes part of the publicly-listed DAIHEN Corporation based in Osaka, Japan. In the course of resolving its succession issues Lorch has found the sought-for strategic partner for its continued long-term expansion. ICFG Germany / Wintergerst Societät für Unternehmer-Beratung provided a full suite of services  to facilitate the succession arrangement and international investor search.