Global automotive supplier Delfingen, whose activities include the production of electrical cable protection solutions, has entered into exclusive negotiations for the acquisition of Schlemmer’s activities in Europe and Africa.
Schlemmer is a German industrial group specializing in cable protection and the manufacture of injection moulded parts for the automotive industry. Battered by operational and financial difficulties, the company entered preliminary insolvency proceedings on 19 December, 2019, under the supervision of the Munich insolvency court. Insolvency was confirmed by the court on 1 March, 2020.
The company’s Asian businesses have been acquired by its Chinese partner, the Fengmai-Ningbo Huaxiang Group.
Schlemmer’s businesses in Africa and Europe employ a workforce of some 1000 people and generate a turnover of around 100 M€ at 5 factories in Germany, Romania, Russia, Morocco and Tunisia. The two latter plants are joint ventures.
In a difficult market context, this acquisition would enable Delfingen to consolidate its market share in Europe, to strengthen its proximity to German car manufacturers and equipment suppliers, and to pool research and development efforts to support the transition of the automotive sector towards hybrid/electric engines. The latter represents a major disruption for the automotive industry but is expected to boost demand for cables, high-voltage wiring harnesses and connectors. Delfingen is a leading producer of protection and routing solutions for electric and fluid on-board networks
The acquisition could be effective within three months, while the legal documentation is finalized and the conditions precedent are fulfilled.
If completed, this operation will be financed by debt raised from Delfingen current financial partners.
France based and family-owned, Delfingen achieved a turnover of €230 M in 2019, employs over 2800 people and has a presence on 4 continents with over 30 locations including 26 manufacturing plants and 9 R&D centres.