DC Advisory acts as exclusive financial advisor to Torqx Capital Partners and the shareholders of Contour on its sale to OSG

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