Automotive electronics supplier Joyson Investment has acquired a 74.9% stake in German operation Preh, although both parties are declining to reveal the cost involved.
The majority buyout follows a joint venture in which Joyson and Preh entered the Chinese market in August 2010.
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Preh’s equity ratio will be strengthened by what it says is a a “significant capital increase, rising to more than 40%” although it notes transaction details will remain confidential.
The DBAG-Group (Deutsche Beteiligungs) acquired Preh in October 2003, together with Preh management in a management buyout. In 2003, Preh’s automotive sales were EUR169m (US$244m), with this rising to EUR343m by last year. Deutsche Beteiligungs AG, including funds administered by it, DBAG-Group and management – retain a minority share of 25.1%.
“During our more than seven years’ commitment to Preh, we had several options to sell Preh successfully,” said DBAG board member Rolf Scheffels.
“However, as we always pursue a sustainable development of our holdings, we decided in favour of a new partner who offered the best possibilities in terms of a continuing growth strategy. In the transition period, we will continue to play a constructive role even in the new set-up as partner.”
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By GlobalDataPreh’s focuses on vehicle interior control systems, sensor systems, electronic control units and assembly systems.
Joyson Automotive is part of Joyson Group, Ningbo (China) which, besides its automotive unit, also has a real estate division, and in 2010 with 1,800 employees achieved total sales of EUR198m.
Joyson Automotive includes Joyson Automotive Ningbo, Changchun Joyson, Bosen Corporation Ningbo and Huade Plastics Shanghai. It had total sales of EUR125m in 2010.
Deutsche Beteiligungs AG (DBAG) is a German private-equity company. Deutsche Beteiligungs AG, including funds administered by them DBAG-Group and management – retain a minority share of 25.1%.
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