Autoneum takes over the automotive activities of Borgers Group

Last Friday evening, Autoneum signed an agreement for the acquisition of Borgers’ automotive activities. The transaction is expected to close in April 2023 subject to regulatory approval. The enterprise value paid is EUR 117 million. The transaction will initially be financed through a new credit facility available in addition to the CHF 350 million syndicated loan extended in October 2022. A capital increase of approximately CHF 100 million is planned for the long-term refinancing of the acquisition. Autoneum’s two largest shareholders, Artemis Beteiligungen I AG and PCS Holding AG, have agreed to participate in the capital increase in proportion to their current holdings. Even taking into account the aforementioned capital increase, the transaction will generate positive earnings per share from the start.

Borgers specializes in acoustic protection, insulation and textile upholstery for cars. Borgers’ product and customer offerings are highly complementary to Autoneum’s product and customer portfolio. Borgers’ product lines wheel arch liner and trunk liner, as well as their truck activities, are an optimal addition to Autoneum’s product range. Borgers is the market leader in Europe, particularly in the field of textile wheel arch coverings. In addition, the Borgers range is distinguished by sustainable and fully recyclable products. In the 2021 financial year, the Borgers Automotive Group generated a turnover of 610 million euros with approximately 4,700 employees. Thanks to Autoneum’s global presence, Borgers’ product portfolio contributes to the sales potential for medium-term profitable growth outside Europe.

Autoneum takes over Borgers from bankruptcy and has agreed new price and delivery conditions with its customers. These ensure sustainable profitability and the further development of product and process technologies in the short and long term.

Matthias Holzammer, Chief Executive Officer of Autoneum, said: The acquisition of Borgers is based on sound and compelling industrial logic. The technologies and product portfolios of the two companies complement each other perfectly. At the headquarters in Bocholt, Germany, Borgers has a high level of competence in the field of material and product development with a technical center and highly qualified and committed employees. For this reason, we intend to integrate Borgers into our existing global product development and customer strategy. We regard the Bocholt location as a technical competence center for the product solutions wheel arch linings, boot systems and for the product and process development of textile carrier materials based on needle felt technology. Ensuring a high-quality supply of the relevant components to customers is a top priority, both in the short and long term.

Hans-Peter Schwald, Chairman of the Board of Directors of Autoneum Holding Ltd, added: With the acquisition of Borgers, Autoneum further expands its global market leadership in sustainable and lightweight acoustic and thermal management solutions for vehicles. This is an important strategic step in the development of Autoneum.