MCF advises on the disposal of the EUROGATE Erfurt assets to LGI
MCF supported Jan H. Wilhelm of law firm hww hermann wienberg wilhelm (hww) in his role as insolvency administrator in the disposal of the Erfurt-based warehouse business of EUROGATE Warehousing & Distribution Erfurt GmbH (EUROGATE) to LGI Logistics Group International (LGI). Jan H. Wilhelm has been continuing the business operations of EUROGATE/MARE Group since the latter entered insolvency proceedings in 2014. MCF supported hww in finding a new owner for EUROGATE’s logistics processing. The mandate included the identification of potential buyers, due diligence, and support in the negotiation process. As part of the acquisition of EUROGATE, LGI has committed to preserving all of the 130 jobs of EUROGATE’s logistics business located in the German cities of Hamburg and Erfurt.
The Deal
LGI was created through a spin-off from Hewlett-Packard Germany in 1995. It employs around 4,500 people located at more than 45 sites in Europe, the United States, and Russia. LGI is part of Swedish Elanders Group, a global supplier of integrated solutions in the areas of supply chain management, print & packaging and e-commerce. LGI itself provides industry-specific logistics solutions to well-known customers from the automotive, electronics, fashion & lifestyle, health care & life science, and industrial sectors. Starting in summer 2018, LGI will operate parts of the European distribution for a variety of Panasonic products, primarily in consumer electronics. To this end, it will take over the employees and operations of EUROGATE, which was the previous logistics service provider for Panasonic in Germany. The acquisition entails EUROGATE’s Erfurt logistics centre with 50,000 square metres of space, which primarily distributes Panasonic consumer electronics in Europe, and a team in Hamburg assigned to administrative processes such as customs and transport management. The product range includes over 4,000 items, from hair trimmers and razors, to televisions and heat pumps. Beyond that, LGI will render additional services like kitting, packaging, quality inspections and rework.
About hww hermann wienberg wilhelm
hww is one of the largest service companies for legal consulting, restructuring, insolvency administration and receivership in Germany. The firm supplies tailor-made solutions with maximum precision. The target-driven commitment is to ensure the most responsible and best possible treatment of the entrusted businesses. hww hermann wienberg wilhelm is based in Frankfurt, Germany and has 24 offices throughout the country.
