PE Deal: Luther Advises the Shareholders of Montanhydraulik Group on the Sale of Their Stake to One Equity Partners

The previous shareholders aimed, through a structured and carefully prepared sales process, to secure a long-term, growth-oriented partner who would continue the company’s successful development and enable further international expansion. With One Equity Partners, an international private equity firm, an investor was found who shares these objectives and possesses extensive experience in advancing medium-sized industrial enterprises.

A transaction team from Luther, led by Dr Björn Simon and Dr Johannes Becker, supported the shareholders of Montanhydraulik Group throughout the entire M&A process. This included not only corporate/M&A legal advice but also tax structuring of the transaction, structuring of the sale itself, legal preparation including reorganisation measures on the seller’s side, contract negotiations, and coordination with other legal and financial advisers. Particular attention was paid to the specific interests of a shareholder group composed of the founding families of Montanhydraulik Group, as well as ensuring a robust and future-oriented succession solution for both the corporate group and its employees.

Complex Transaction Structure with International Dimension

A particular challenge in this M&A project lay in designing and implementing a complex transaction structure which required, among other things, incorporating a sale-and-lease-back arrangement as part of the purchase price financing. Additionally, the transaction had an international aspect due to Montanhydraulik Group’s global presence with locations in several jurisdictions including the USA, Canada, India, and Italy. The Luther team worked closely with international correspondent law firms such as Polsinelli PC (USA, Legal), Brix+Partners LLC (USA, Tax), Baker & McKenzie LLP (Canada, Legal), BCF Business Law (Canada, Tax), International Law Group (India, Legal and Tax), as well as involving Unyer partner Pirola Pennuta Zei (Italy, Legal and Tax) under the leadership of Francesca de Fraja Frangipane to efficiently address legal and tax requirements in each country. Through this transaction, Luther’s M&A practice has once again demonstrated its ability to centrally manage and successfully complete complex cross-border M&A projects with an international focus.

As part of this transaction, the previous shareholders are selling their entire stake to OEP. “From the outset our collaboration with Dr Björn Simon and Dr Johannes Becker and the entire Luther M&A team was marked by exceptional trustworthiness as well as personal reliability and outstanding commitment. We always felt excellently advised and were guided safely and confidently through this complex transaction. We particularly appreciated this during the sale of our company which had been family-owned for more than 70 years,” said Dr Peter Lipphardt, shareholder of Montanhydraulik Group.

Completion of the transaction remains subject to fulfilment of customary contractual and regulatory conditions, especially approvals from relevant merger control and investment review authorities. Closing is currently expected at the end of Q1 2026.

About One Equity Partners:

One Equity Partners is a private equity firm focused on mid-market companies in industry, healthcare and technology across North America and Europe. The firm aims to build market-leading businesses by identifying and executing transformative corporate combinations. OEP is regarded as a trusted partner with a differentiated investment process, an experienced multidisciplinary team and a proven track record in creating long-term value for its partners. Since 2001 it has successfully completed more than 500 transactions worldwide. OEP was founded in 2001; its spin-off from JP Morgan occurred in 2015. The company maintains offices in New York, Chicago, Frankfurt and Amsterdam.

About Montanhydraulik:

Montanhydraulik Group was founded in 1952 with headquarters in Holzwickede, Germany. The company offers bespoke hydraulic cylinders and customised hydraulic systems for demanding applications across various industries. Its products are used in key sectors such as mobile cranes; construction and earthmoving machinery; tunnel boring machines; onshore/offshore applications; oil & gas industry; hydraulic steel structures; industrial engineering; waste management; vehicle manufacturing. As a world-leading provider of hydraulic cylinders and systems it employs over 1,100 staff at ten locations across Germany, Italy, India, Canada and USA. With decades-long tradition in developing high-quality cylinders, valves and units Montanhydraulik Group possesses outstanding technological expertise enabling it to deliver sophisticated application-specific system solutions.

For Montanhydraulik:

Luther, Corporate/M&A: Dr Björn Simon (Partner/Lead), Dr Johannes Becker (Partner/Lead), Michael Ströbel LL.M. (Partner), Dr Sven Stumm (Counsel), Tim Schinkel LL.M. (Senior Associate), Felix Werner (Senior Associate), Felix Werner (Senior Associate), Victoria Ehrensperger (Associate) 

Luther, Tax Law: Dr Ulrich Siegemund (Partner), Nicole Fröhlich (Partner), Dr Frank Seidel (Counsel) 

Luther, Real Estate & Construction Law: Ruth Thomsen (Partner), Maria Lucia Marinez (Associate) 

Luther, Commercial Law: Dr Johannes Teichmann (Partner), Rebecca Romig (Counsel), Julian Wantzen LL.M. (Associate) 

Luther, Employment Law: Achim Braner (Partner), Nadine Ceruti (Counsel), Jan Hansen (Senior Associate) 

Luther, IP/IT Law: Dr Wulff-Axel Schmidt (Partner), Jonny H Giessel (Senior Associate) 

Luther, Finance: Christoph Schauenburg LL.M. (Partner), Stefan Jokel (Counsel), Anna-Sophia Riebeling (Senior Associate) 

Luther, Competition Law / Foreign Trade / Investment Control: Prof Dr Christian Burholt LL.M. (Partner), Ole Melchior (Partner), Lara Jaeger (Senior Associate), Ann-Kristin Freiheit (Senior Associate) 

Luther, Environmental Law / Planning / Regulation: Bernhard Burkert LL.M. (Partner)