PwC advisor to Tata Autocomp in their acquisition of IAC Sweden

When automotive components manufacturer IAC Sweden went bankrupt in June 2024, it became one of the most talked-about bankruptcies in Sweden in the 21st century. 1,300 employees were affected and faced an uncertain future. The appointed liquidator continued to run the business while simultaneously initiating a sales process to secure the future of the three facilities in Färgelanda, Skara, and Gothenburg, with a combined turnover of approximately 8 billion SEK.

Tata Autocomp Systems, a subsidiary of the Tata Group, saw potential in IAC Sweden and contacted Niklas Karnros and Jon Walberg at PwC Sweden for support in an initial evaluation and advisory services for a potential acquisition. PwC was subsequently engaged as the exclusive financial advisor, with a relatively short time to submit a bid.

– Since it was a bankruptcy, we faced several complex challenges, including an asset transfer where all agreements needed to be renegotiated, and operations were limited by special rules during bankruptcy, explains Jon Walberg. 

PwC led the transaction from Stockholm, collaborating with teams in Sweden, India, and Germany to handle various areas, such as financial due diligence, technical evaluation, and lease negotiations.We wish to express a special thanks to Himanshu Goyal and his team at PwC India for an excellent collaboration.

After a long and multifaceted process, the purchase agreement was signed in March this year. Peter Sigfrid, client manager and project leader, summarizes the challenges and opportunities:

– Completing a deal of this complexity within the relatively short timeframe was a challenge, but it proved to be an opportunity to create value for both Tata Autocomp and the Swedish automotive industry. It was important for us and the client not only to focus on the financial aspects but also on strategic values in terms of technical expertise and geographical presence, which in turn secures jobs and future investments in Sweden.

Niklas Karnros, M&A partner at PwC, emphasizes the importance of their international network: 

– The collaboration between our international teams was key to success. By combining local expertise with global experience, we created a solution that benefits all parties."

The acquisition of IAC Sweden by Tata Autocomp has not only ensured continued production and delivery to key customers such as Volvo, Scania, and Volvo Cars. It has also helped preserve jobs and support affected local economies.

– By carrying on and developing IAC's operations, Tata Autocomp has demonstrated its commitment to long-term growth and innovation in the Swedish automotive industry, which in turn creates added value and societal benefits. We are both happy and proud to have contributed to a sustainable solution that strengthens Swedish industry, concludes Jon Walberg.

PwC's team:

Jon Walberg, lead partner for the entire project, PwC Sweden
Peter Sigfrid, client relations and project leader, PwC Sweden
Niklas Karnros, responsible partner, M&A, PwC Sweden 
Karl-Johan Forsman, Financial DD, PwC Sweden
Oskar Sandblom, Real estate, PwC Sweden
Anton Nordström and Nargiz Mammadova, valuation/modelling, PwC Sweden
Andreas Ek, M&A, PwC Sweden
Mohit Kher, M&A, PwC India 
Christian Collingro, Technical DD, PwC Germany
Himanshu Goyal, lead partner PwC India
Stefan Schäfer, lead partner PwC Germany