Neapco has acquired IFA Holding GmbH from AEQUITA Management SE & Co. KGaA

IFA Holding GmbH

The IFA Group develops and manufactures drive shafts and joints as an automotive supplier to leading premium OEMs and roughly 2,000 employees at seven locations in Germany, the U.S., China and Poland. The company is the largest automotive supplier headquartered in East Germany with sales exceeding Euro 500 million.

The Deal

Following its support during Neapco’s acquisition of Tedrive in 2010, Lincoln was approached by Neapco in the course of 2024 to act as strategic buy-side advisor in the acquisition of drivetrain-specialist IFA. The client’s objective was to successfully execute a highly complementary and synergistic transaction in a challenging automotive market environment while securing its technological leadership towards electric vehicle drivetrain solutions. The transaction was particularly complex due to its multi-layered negotiation structure with multiple stakeholder groups involved.

Lincoln supported Neapco through simultaneous negotiations with all relevant stakeholders, a comprehensive debt restructuring as well as deriving an appropriate valuation for the asset.

Lincoln’s differentiators were critical to achieving a successful outcome. The firm’s deep industry expertise and global relationships enabled effective coordination across multiple stakeholders, including OEMs and financial creditors. In addition, Lincoln’s Capital Advisory Group played a key role in lender negotiations related to refinancing and debt restructuring, providing valuable insights into creditor motivations, objectives and negotiation tactics. This integrated approach ensured alignment across all parties and ultimately facilitated the successful completion of the transaction.

Our Perspective

Patrick von Herz, Lincoln International Managing Director who led the transaction, commented, “This transaction highlights the increasing complexity of automotive mergers and acquisitions, where success depends on managing parallel negotiations across shareholders, OEMs and a diverse lender base. In a challenging market environment, our integrated approach combining deep sector expertise with capital advisory capabilities was key to aligning stakeholders and delivering a successful outcome for our client.”

Christian Gareis, Lincoln International Director, added, “Our intimate knowledge of the automotive sector and all parties involved played a crucial role in building trust and transaction security for all stakeholders involved throughout the transaction process; in particular, when addressing ongoing industry headwinds such as tariffs and volatile call-offs by OEMs”.

Neapco Holdings, LLC

Neapco, founded in 1921, is a leading provider of innovative driveline solutions for the automotive industry. Based in Farmington Hills, Michigan, the company develops, manufactures, and distributes high-quality OEM and aftermarket driveline products for passenger cars, trucks, agricultural and industrial applications. All products are designed and manufactured in state-of-the-art facilities in North America, Europe and Asia. The company has over 3,300 team members at 13 locations worldwide.

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