Dettingen/Erms, October 7, 2024 +++ The automotive industry is in a state of far-reaching transition, underlying conditions are in constant flux, and significant investment is required to remain competitive. In ElringKlinger's case, this applies primarily to products in the area of thermal and acoustic shielding, particularly in Europe and North America. Against this backdrop, the Group has taken the strategic decision to divest itself of its two companies in Sevelen (CH) and Buford, GA (USA). To this end, ElringKlinger today signed an agreement on the sale of the aforementioned entities with the Certina Group, which has already gained extensive expertise in the automotive supply industry through its subsidiaries. The closing of the transaction is expected to take place before the end of 2024, subject in particular to antitrust approval. Both parties have agreed not to disclose any further details of the contract. Asked to comment on the decision, CEO Thomas Jessulat said, “With this transaction, we are looking to hone the Group's profile and focus our product portfolio along the path we have mapped out as part of our SHAPE30 transformation strategy. Based on market developments, we have been conducting thorough reviews of all our product groups to determine their potential for the future, which includes drawing up a comprehensive, integrated strategy for our sites." ElringKlinger's plants in Sevelen and Buford manufacture shielding technology products for thermal and acoustic management in vehicles. In total, ElringKlinger generated revenue of approximately EUR 175 million at the two sites in 2023. At the end of 2023, the overall headcount at these sites stood at around 650. The continuation of the companies as going concerns was one of the key issues for ElringKlinger, as CEO Thomas Jessulat emphasized: “We could only consider a solution that took into account the interests of both our customers and the local workforce. We are confident that the Certina Group fulfills these criteria." The Certina Group is a family-owned industrial holding company based in Grünwald, Germany. Since its inception in 1992, Certina has invested according to the principles of sustainability, continuity, and corporate responsibility with a focus on European SMEs. The Group currently comprises 21 company platforms across five industries and generates revenues in excess of EUR 1 billion – employing more than 4,000 people. The Certina Group portfolio includes well-known companies from the automotive supply industry such as Isolite GmbH and QCision AG, formerly Feintool Technology AG. As part of the transaction, Certina will assume all existing obligations and continue operations at both companies. As part of this transaction, ElringKlinger AG will recognize non-cash impairment losses in the mid to high double-digit million euro range as of the end of the third quarter of 2024. These relate primarily to reclassification in accordance with IFRS 5. The figures are provisional and unaudited. In addition, the Management Board has reassessed its annual guidance for 2024 in the context of the transaction. ElringKlinger has maintained its projection of an adjusted EBIT margin of around 5% of Group revenue for the current financial year. The Group expects ROCE for 2024 to be significantly below the previous year's level of 5.6%. The Group had previously forecast a figure of around 6% for 2024. The Group now anticipates revenue to be at a level slightly below the previous year's figure in organic terms (previously: slight organic growth) and expects operating free cash flow to be slightly positive (previously: around 2% of Group revenue).
Legal notice |
ElringKlinger hones its corporate profile and divests itself of two Group companies
Social Media
Instagram
Facebook
X
LinkedIn
Xing