Gimv increases its stake in VCST by acquiring LRM’s interest

Gimv has increased its majority stake in VCST to 79.8% by acquiring LRM’s interest in the company.

VCST (www.vcst.be) is a supplier to the automotive industry, specialising in the development and production of precision parts for engine and transmission gears, transmission shafts and brake components, for both automotive and non-automotive customers. VCST was founded in 1972 and is currently present on the European and North American markets, with factories in Sint-Truiden (Belgium - headquarters), Reichenbach (Germany), Leon (Mexico), and most recently, Ghangzhou (China). Customers include Continental, Volkswagen, Ford, Paccar, GM, ZF, and more. In 2011, the group expects to achieve a turnover of approximately EUR 150 million and today employs almost 1,000 members of staff.

Due to the collapse of the automotive market in the wake of the previous financial crisis, a new financial structure was drawn up in mid-2009 under the leadership of investment companies LRM and Gimv. As a result, not only were existing bank debts substantially reduced, but Gimv and LRM also injected fresh capital amounting to EUR 10 million. At that occasion Gimv acquired a majority stake in the company. Since then, the automotive industry has benefitted from an extremely quick market recovery in developed regions and continuous growth in emerging markets. Today Gimv has increased its stake in VCST from 53.1% to 79.8% by acquiring LRM’s interest. The aim is that VCST continues on its current growth path, with further diversification regarding markets, customer base and innovative product solutions.

All parties involved have decided not to disclose any further financial details on this transaction.