The MAHLE Group is selling its forging activities MAHLE Motorkomponenten GmbH to the Austrian Frauenthal Group. Both parties have agreed not to disclose the volume of the transaction, which is still subject to approval by the antitrust authorities.
The agreement affects the Plettenberg (North Rhine-Westphalia) and Roßwein (Saxony) plants, with around 510 and 130 employees respectively. Their focus lies on the development and production of highly stressed steel-forged blanks for connecting rods and balancer shafts. Together, the two locations generated annual revenue of approximately EUR 125 million in 2016 and are technology leaders in their core business activities.
The sale is taking place as part of a strategic portfolio decision by the MAHLE Group.
Upon the change in ownership, the agreement concluded for safeguarding the employment of all MAHLE Group employees in Germany will also apply to the employees of Plettenberg and Roßwein. This rules out compulsory redundancies until the end of 2019.
MAHLE is a leading international development partner and supplier to the automotive industry. With its products for combustion engines and their peripherals as well as solutions for electric vehicles, the group addresses all the crucial issues related to the powertrain and air conditioning technology—from engine systems and components to filtration to thermal management. MAHLE products are fitted in at least every second vehicle worldwide. MAHLE components and systems are also used off the road—in stationary applications, for mobile machinery, rail transport, as well as aerospace and marine applications.
In 2015, the group generated sales of approximately EUR 11.5 billion with around 76,000 employees and is represented in 34 countries with over 170 production locations. At 15 major development locations in Germany, Great Britain, Luxembourg, Slovenia, the USA, Brazil, Japan, China, and India, about 6,000 development engineers and technicians are working on innovative solutions for the mobility of the future.
The Frauenthal Group, which is listed on the Vienna stock exchange, is a conglomerate of the two divisions, Frauenthal Automotive and Frauenthal Trade. With nine locations in Europe and China, Frauenthal Automotive is market and technology leader as well as a development partner in the European commercial vehicle and passenger car industry for metal pressed and welded components (Gnotec), air tanks, and U-bolts. In 2015, the Frauenthal Group achieved a revenue of approximately EUR 791 million and employed an average of 3,121 staff.
Jones Day is advising MAHLE in the sale with a team led by Ansgar Rempp.
Involved fees earner: Ansgar Rempp – Jones Day;
Law Firms: Jones Day;
Clients: Mahle GmbH ;