CMS, international law firm, is advising Phillips Industries (Phillips Connect Technologies), a leading US - based manufacturer and supplier of parts for the automotive industry, on the purchase of Fortech, a Polish manufacturer of high-quality electrical connections for trucks and cars. The acquisition of Fortech is the US company’s first investment in Central Eastern Europe.
The newly formed company will be identified as Phillips-Fortech Poland Sp. z o. o. Jacek Pekala, the founder of Fortech Poland will serve as president of the management board of the new company.
According to Phillips Industries, Fortech Poland manufactures a similar line of commercial vehicle electrical components as those produced by Phillips Industries in North America and distributes to customers throughout the European Union. In addition to the similarity of the product offerings, the strong management and entrepreneurial spirit of Fortech singled them out as an excellent acquisition for Phillips to establish a more significant manufacturing, distribution and R&D presence in Europe.
Phillips Industries is a US-based family business and manufacturer of advanced electrical and air brake components as well as electronic solutions for communicating vehicle data to fleets and their drivers for the commercial truck and trailer industry. Its products are standard on nearly 100% of Class 8 trucks and more than 50% of all trailers manufactured in North America. The company operates in the US and Canada, Mexico, and China. Phillips Industries provides Daimler AG with electrical/trailer cables for their Mercedes-Benz trucks in Europe. Current capacity, as well as planned growth at the Phillips-Fortech Poland manufacturing site, will further support domestic production of components for various customers throughout the region.
CMS’s work on this transaction included a due diligence investigation, negotiations towards an investment agreement and the preparation of M&A documentation.
The transaction was led by Julita Mazurkiewicz, advocate and senior associate at CMS Warsaw, supported by Patrycja Maliszewska, lawyer. Partner supervision was provided by Błażej Zagórski.