Interview with Martin Meyer, CFO of AMAG Group

In September 2022, AMAG Group AG (AMAG) acquired the Helion division of Bouygues E&S InTec Schweiz AG, which specializes in photovoltaics, heat pumps and electromobility. With the acquisition of the energy pioneer, Switzerland's largest car importer has secured access to new business areas, significantly expanding its own range of services relating to electromobility.‍

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In future, customers will be offered comprehensive complete solutions from a single source, which, in addition to the electric vehicle itself, will also include advice, planning, installation and maintenance of photovoltaic systems, electricity storage solutions and charging stations. In this way, the sustainability strategies of fleet and business customers can also be supported - including financing offers from AMAG Leasing AG. The creation of large battery storage capacities will also open up new business models in the field of energy management - for sustainable mobility and sustainable living. Helion will be fully integrated into the new AMAG Energy & Mobility division with all of its approximately 450 employees in a separate company.‍

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What belongs together is thus growing together under the AMAG umbrella. In particular, the new offering contributes to the decarbonization of transport and security of supply in Switzerland. A sustainable corporate culture and strategy has been an important part of the Swiss family-owned company AMAG since it was founded 77 years ago.‍

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IFBC acted as financial advisor to AMAG on this forward-looking transaction throughout the entire acquisition process. The financial due diligence was of great importance, as these findings were seamlessly incorporated into the valuation and the contract and purchase price negotiations. An ongoing, strategic dialog rounded off the excellent collaboration.‍

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Martin Meyer is CFO of AMAG and explains in the following interview AMAG's thoughts on entering the energy business and identifies the success factors of this acquisition.

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What kind of car do you drive?

An electric one of course, a beautiful Audi e-tron GT.

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Will we still own a car in the future?‍

We will see different usage models in the future, from private ownership to leased or subscribed cars to use only for selected days or journeys - "Mobility as a Service" is the buzzword here. As the AMAG Group, we want to offer our customers all options, which is why we are developing a wide range of offers.

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When did AMAG's strategy for sustainable, individual mobility come about?‍

AMAG was already sustainable when this term was not yet omnipresent. Even in the early years of our foundation, in the 1950s, AMAG was already setting standards in many respects, which today is subsumed under "ESG". Therefore, there is no starting point, but rather our current vision of becoming the leading provider of sustainable individual mobility is the consistent further development of our understanding. It was and is clear to us that individual mobility will only be sustainable if it is environmentally and climate-friendly. And we at AMAG want to be part of the solution, not part of the problem.

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Where do you see the greatest opportunities and potential for AMAG in the future?‍

On the one hand, in our core business, which we nurture, maintain and develop, and on the other hand in additional, complementary mobility-related offerings - and as mobility is set to become electric, also in the area of energy production and management. The car of tomorrow will also be part of the Swiss energy supply.

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How is AMAG using M&A as an instrument to implement its strategy?‍

The question is simple: what can we develop ourselves or where does it make sense to take over something that works? M&A is always a possible means for us if we have the feeling that the culture and mindset of a company suits us and the products support our strategy implementation in a meaningful way.

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What were the success factors for the takeover of Helion?‍

It was and is important that we have the same visions and goals and that both parties are convinced that we can achieve much more together than if we were to operate individually. Just like Aristotle: "The sum is greater than its parts". Throughout the entire process, the exchange was transparent, appreciative and characterized by this common goal.

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What aspects and challenges characterized the transaction and negotiations?‍

The transaction was challenging given the information available and the tight timeframe. In addition, key activities had to take place during the summer vacations, which naturally placed an additional burden on all project employees. The negotiations were very professional and were conducted very respectfully by both sides despite intensive discussions.

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How do you rate the importance of financial due diligence as part of the acquisition process?‍

Financial due diligence (FDD) is an indispensable part of the acquisition process, enabling the parties to make an informed decision and accurately determine the value of the target company. The FDD helps us to understand the financial performance of the target company, uncover potential risks and opportunities and determine the valuation of the company.

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What added value did the collaboration and dialog with IFBC bring you?‍

The success or failure of a transaction depends to a large extent on the selection of the right advisor to support the team with its specialist expertise. AMAG does not have a comprehensive M&A department that can cover all the necessary skills required in an M&A process in-house. It is therefore essential for us to have a partner that we can trust, who will provide us with professional support throughout the entire process and whose values also match our own.