11/1/21 โ Following a strategic plan to focus on its Wiring Systems Group, Leoni AG has sold the majority of its industrial business to strategic investor BizLink Holding Inc.
A press release said that the company has sold its Business Group Industrial Solutions, which belongs to the WCS division (Wire & Cable Solutions) and represents significant parts of its industrial business. The sale marks another important milestone on Leoniโs path towards the long-term stabilization of the company via its VALUE 21 performance and strategy program.
โWith this step, we are once again proving that we are consistently continuing to implement our announced and already advanced focus on the Wiring System Division,โ said Leoni AG CEO Aldo Kamper. The company has previously stated its plans to strategically focus on consolidating its leading position as a supplier of wiring systems for the automotive industry. Against this backdrop, Leoni has already sold two units of the WCS division (Leoni Schweiz AG and the data communication and compound divisions of Leoni Kerpen GmbH) in recent months.
BizLink is an international provider of high-quality solutions for cable connections and connectivity services. BizLinkโs acquisition of Leoniโs Industrial Solutions will expand its market presence, especially in Europe, and there is a clear perspective for future development and growth. The sale includes around 20 international locations of the Leoni Industrial Solutions business in 10 countries with around 3,000 employees. The activities of these locations, among others, include the areas of healthcare, robotics and automation.
โThe Industrial Solutions business today operates globally successfully in the market, and I am convinced that it continues to have a very promising future,โ Kamper said. โFor the WCS units put up for sale due to our strategic focus on the automotive industry, it has always been our goal to find investors who want to strategically develop the products and services. I am confident that we have succeeded in doing so with BizLink.โ
BizLink Chairman Roger Liang said the acquisition is a very good fit. โ(It) will boost our technical and service capabilities, solidify our global scale, bring us closer to customers, and gain access to new industrial customers. The acquisition brings forward our long-term diversification plans, and will provide BizLink with immediate gains within multiple secular growth industries.โ
The sold activities generated sales of approximately โฌ430 million in fiscal year 2020 and are valued with an enterprise value of around โฌ450 million. Upon completion of the sale, a profit of around โฌ200 million is expected to be accounted for in the Groupโs reported EBIT.
