The German automotive supplier Leoni sells a majority stake of its Business Group Industrial Solutions to the strategic investor BizLink Holding. The target belongs to the WCS division (Wire & Cable Solutions) and represents significant parts of Leoni’s industrial business. The sold activities generated sales of approximately € 430 million in fiscal year 2020 and are valued with an enterprise value of around € 450 million.
The transaction is part of Leoni’s stabilisation strategy. The automotive supplier wants to focus on wiring systems for the automotive industry and has therefore already sold two units of its WCS division (Leoni Schweiz AG and the data communication and compound divisions of Leoni Kerpen GmbH) recently.
The sale to BizLink shall lead to cash inflow of more than € 300 million after deduction of, among other things, financial liabilities and pension charges. The funds shall be used to improve liquidity. Upon completion of the sale, a profit of around € 200 million is expected to be accounted for in the Group’s reported EBIT.
The buyer BizLink is an international provider of high-quality solutions for cable connections and connectivity services. BizLink’s acquisition of Leoni’s 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 ten countries with around 3,000 employees. The activities of these locations among others include the areas of healthcare, robotics and automation.