For sale
equity stake in share capital of
"Foundry-mechanical plant" OJSC (LMZ)
up to 34,2% of share capital
Location: 3, Promishlennaya st., Semyonov, Nizhny Novgorod Region, Russian Federation

The plant is russian manufacturer in the field of Industrial valves and fittings with a full production cycle - from research and development stage - till the finished goods (gate valves, screw-down stop valves, check valves, safety valves, plug and ball plug valves, draw-off taps and stop valves and others)
About target-plant
The main consumers of plant finished goods are water supply companies, oil and gas companies, housing and utilities companies. The geography of supplies covers the whole of Russia and Belarus, Ukraine, Kazakhstan and Uzbekistan. Long-term partnerships and contracts are concluded with many of the largest companies-consumers of valves throughout the CIS.
Assets of the plant
The structure of fixed assets includes:
  • buildings, lands and constructions account for about 26 million rubles;
  • industrial machinery and equipment account for about 45 million rubles.
The main financial indicators
  • For the period 2014-2016 average annual revenue growth rate was 17%.
  • Net profit for 2016 amounted to about 60 million rubles, which is twice higher than the same indicator for 2014.
  • At the end of 2016 Net Assets amounted to 306 million rubles.


Benefit from acquiring target equity stake
Why is it profitable to become a shareholder of LMZ today?
Increasing growth of plant turnover
Now the enterprise is at the stage of active growth of production and renovation of production equipment and machinery, as well as expansion of sales volumes and supply geography.
The revenue is diversified by russian (80%) and foreign (20%) consumers.
Excellent financial position
The financial indicators have a stable growth dynamics.
There are no loans and borrowings in the company's liabilities, so that LMZ have a potential financial leverage effect.
The plant has financial investments in the form of bank deposits: at the date of 31.12.2015 about 102 million rubles are placed in banks, that account for 35% of all assets.
Possibility of gaining control over the enterprise
The acquisition of "blocking" share stock will allow to participate in corporate policy and will enable to influence on development strategy, as well as to lay up claim control over the plant.
The possibility of reselling the share stock to the largest russian and foreign metallurgy players
This business asset can become interesting to large russian and foreign players in the metallurgical industry, that allow to cash out your investments in the foreseeable future.
+7 977 871 01 20
info@investburg.ru
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