The Problem: The acquisition was important to Tyrolit for several reasons. First, the Eastern European abrasives market has been growing three times faster than the Western European market. Second, overall costs are much lower. And, finally and perhaps most significantly, it would mean a return of the Swarovski Company to its native Czech Republic after 110 years. Tyrolit Schleifmittelwerke Swarovski competed against another leading European abrasives manufacturing company in a public tender to purchase Carborundum Electrite. Initially it won the right to engage in negotiations to purchase the plant but negotiations ended abruptly and unsuccessfully.
Strategic Recommendation: Swaroviski turned to Dutko Global Advisors’ Prague office for help in restarting negotiations and completing the sale. Working closely with Tyrolit, Dutko designed a strategy to use its contacts not only with Carborundum but also with the public policy decision-makers in the Czech Republic to convince Riverside that it should continue to talk with Swarovski and eventually agree to the sale.
Results: Dutko Global Advisors in Prague played a key role in Tyrolit Schleifmittelwerke Swarovski’s successful acquisition of Carborundum Electrite, a.s. The effort launched by Dutko Global Advisors persuaded Riverside to reopen negotiations with Tyrolit Schleifmittelwerke Swarovski, and ultimately to sell them the plant. The sale to Tyrolit is not only a victory for the company, but also secures employment opportunities for workers in the Czech Republic and in an economically growing region.
|
