Background

  • Contour is a market leading manufacturer of diamond tools for ultra-precision machining of primarily optical surfaces. Contour has seven locations across the globe, generating revenue of EUR 19m in 2023
  • Since January 2018, Diamond Tools Group has been majority owned by Torqx Capital Partners, which has made significant investments in its operations and organisation
  • OSG Corporation (OSG), listed on the Japanese stock exchange, is a global manufacturer of cutting and machine tools, generating revenue of almost EUR 1bn in 2023. With manufacturing and sales locations in 33 countries, OSG supplies a leading share of the world's machining tools such as taps, drills, end-mills and dies to a wide range of industries

Process

  • DC Advisory acted as the exclusive financial advisor to Torqx Capital Partners and the other shareholders of Contour on their collaboration with OSG
  • DC Advisory ran a targeted auction process, leveraging its local know-how and relationships, sector expertise and international network to engage a competitive bidder group acknowledging Contour’s unique position, global footprint and niche offering of diamond tools
  • DC Advisory provided comprehensive sell-side M&A advisory services, including overall transaction strategy and tactics, preparing marketing materials, financial modelling, and close support to the negotiations and related transaction documentation

Outcome

  • Under the terms of the transaction, OSG will acquire a 100% stake in Contour
  • After customary closing conditions are fulfilled, the transaction is expected to close at the end of July 2024. There are no additional regulatory approvals
  • The acquisition of Contour aims to enable OSG to expand in the micro-precision machining field
  • This transaction showcases the strong sell-side expertise of DC Advisory's Benelux team, including its position as a leading advisor to the financial sponsor community complemented by the firm’s access to Asia and ability to bring together a Japanese leading trade buyer with a Benelux target company

“This is truly a great outcome and an impressive showcase of DC Advisory's quality as a global deal-making team. Very well done!”

David van Hasselt
Partner, Torqx Capital Partners

“We have worked closely with recurring client Torqx as well as Contour's global management team to run a successful targeted trade-centric process, bringing a Japanese corporate buyer across the finish line with great rapport and fit. We are optimistic this collaboration will allow for new opportunities in Contour's field of expertise, contributing OSG’s own production and sales expertise.”

Paul de Hek
Co-CEO, DC Advisory Benelux