EQS-News: ElringKlinger sharpens its company profile and divests two group companies | 07.10.24

ElringKlinger is sharpening its company profile and divesting two group companies

Dettingen/Erms, October 7, 2024 +++ The automotive industry is in a state of major transition, the underlying conditions are constantly changing and significant investments are needed to remain competitive. In the case of ElringKlinger, this mainly applies to products in the field of thermal and acoustic shielding, especially in Europe and North America. Against this background, the Group has taken the strategic decision to divest its two companies in Sevelen (CH) and Buford, GA (USA). To this end, ElringKlinger today signed an agreement on the sale of the above-mentioned entities with the Certina Group, which has already built up 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 to approval by the competition authorities. Both parties have agreed not to reveal any further details about the contract.

Asked to comment on the decision, CEO Thomas Jessulat said: “With this transaction, we want to sharpen the Group’s profile and focus our product portfolio on the path we have set out as part of our SHAPE30 transformation strategy. Based on market developments, we have thoroughly assessed all our product groups to determine their potential for the future, including establishing a comprehensive, integrated strategy for our locations.”

ElringKlinger’s factories in Sevelen and Buford manufacture shielding technology products for thermal and acoustic management in vehicles. In total, ElringKlinger generated a turnover of approximately 175 million euros at the two locations in 2023. At the end of 2023, the total workforce at these locations was approximately 650.

The continuation of the companies as a going concern was one of the most important 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 meets these criteria.”

The Certina Group is an industrial family holding company based in Grünwald, Germany. Since its founding in 1992, Certina has invested according to the principles of sustainability, continuity and responsible entrepreneurship with a focus on European SMEs. The Group currently comprises 21 business platforms across five sectors and generates revenues of more than 1 billion euros – employing more than 4,000 people. Certina Group’s 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 record non-cash impairment losses in the mid to high double-digit million euro range from the end of the third quarter of 2024. These mainly relate to reclassification in accordance with IFRS 5. The figures are provisional and unaudited.

In addition, in the context of the transaction, the Board of Directors reassessed its annual expectations for 2024. ElringKlinger maintains its projection of an adjusted EBIT margin of approximately 5% of the Group’s sales for the current financial year. The Group expects 2024 ROCE to be significantly below last year’s level of 5.6%. The Group had previously forecast a figure of around 6% for 2024. The Group now expects organic sales to be at a level slightly below last year (previously: slight organic growth) and expects operating free cash flow to be slightly will be positive (previously: approximately 2% of the Group’s turnover).

For more information please contact:
ElringKlinger AG | Strategic Communication
Dr. Jens Winter
Phone: +49 7123 724-88335 | Email: [email protected]

About ElringKlinger AG
As an independent supplier operating globally, the ElringKlinger Group has established itself as a powerful and trusted partner for the automotive industry – recognized for its exceptional depth of expertise. Our product portfolio includes innovative solutions for passenger cars and commercial vehicles powered by electric motors, hybrid technology or combustion engines. In addition to the drivetrain, other areas of application are the underbody, the chassis, the braking system, the interior and the bodywork. We were among the frontrunners when it came to positioning ourselves as a specialist in the field of e-mobility – with groundbreaking battery and fuel cell technology and associated components and assemblies, such as plastic housings and metal stamped and molded parts.

Custom lightweight components designed by ElringKlinger can be used throughout the vehicle; they deliver tangible benefits in terms of weight reduction, efficiency and functional integration, especially in e-mobility applications. We offer specifically adapted sealing systems, thermal and acoustic shielding parts and dynamic drive components for a wide range of applications and for every type of drive technology. In addition, we serve the aftermarket in more than 140 countries with an extensive range of spare parts.

This is supplemented with the latest tool technology and products made from high-quality plastics – tailored to the requirements of the automotive industry and other sectors. Building on our excellence in components and systems, we also maintain our forward momentum in the non-automotive sector. These efforts are supported by a dedicated workforce of approximately 9,600 people working within the ElringKlinger Group. Operating in more than 40 locations around the world, ElringKlinger has built a global presence and is closely connected to its customers in all major automotive regions.

Legal notice
This press release contains forward-looking statements. These statements are based on the expectations, market assessments and forecasts of the Board of Directors and the information currently available to it. In particular, these forward-looking statements should not be interpreted as guarantees of future developments and results referred to therein. Although the Board of Directors firmly believes that the statements made and the beliefs and expectations underlying them are realistic, they are based on assumptions that may prove to be incorrect. Future results and developments depend on a variety of factors, risks and uncertainties that could lead to changes in the expectations and judgments expressed. These factors include, for example, changes in general economic and business conditions, fluctuations in exchange rates and interest rates, a lack of adoption of new products and services, and changes in business strategy.