Rojs, Peljhan, Prelesnik & partners advise Avtotehna Group on sale of subsidiary

Rojs, Peljhan, Prelesnik & partners has advised Avtotehna Group with respect to the sale of its subsidiary SWATYCOMET d.o.o., a Slovenia-based company that develops high-quality products in the fields of artificial abrasives and technical fabrics and generates about 95 per cent of its revenue in markets abroad.

The purchaser, Weiler Corporation, based in Pennsylvania, is a leading provider of power brushes, abrasives and maintenance products for surface conditioning. The acquisition of SWATYCOMET substantially expands Weiler’s global reach into the bonded abrasives segment.

It will enable Weiler to offer a comprehensive solution to the welding, metalworking and general industrial markets. Through the transaction, Weiler adds a broad range of cut-off and grinding wheels and technical fabrics to serve industrial markets.

The sale followed shortly after the confirmation of compulsory proceedings over Avtotehna. Completion of the transaction was on 23 December 2015.

The Rojs, Peljhan, Prelesnik & partners team acting for Avtotehna was led by partner Grega Peljhan and partner Bojan Šporar. The two partners negotiated the transaction documentation and also assisted the client on other aspects of the deal, including EU sanctions and state aid aspects. Reed Smith acted for the buyer with partner dr. Andreas Jürgens from their Frankfurt office taking the lead and co-ordinating local advice. Financial advisers included Freitag & Co and Bastion Group acting for the seller and Delphi Advisors for the buyer.