MAHLE to acquire majority share in Letrika
Press release [PDF; 105 KB]
Stuttgart, June 23, 2014 – On June 20, 2014, the MAHLE Group, based in Stuttgart/Germany, signed an agreement for the acquisition of the majority share in Slovenian group Letrika d.d. The conclusion of the agreement is subject to approval by the responsible antitrust and supervisory authorities. MAHLE expects this to be granted in the second half of 2014.
The acquisition of approximately 54 percent is part of a privatization offensive targeting Slovenian companies that have until now been under majority state control. In 2013, Letrika generated sales of EUR 242.5 million with its 2,416 employees at seven production and development locations in Slovenia, Bosnia and Herzegovina, Belarus, China, and Brazil. Headquartered in Šempeter pri Gorici/Slovenia, the company, which is listed on the Ljubljana stock exchange, develops and manufactures innovative electric motors, starter motors, generators, and electrical drive systems for customers in the passenger car, commercial vehicle, and agricultural and construction machinery market segments, as well as other industrial applications.
“As part of our medium- and long-term strategy to establish a mechatronics/electrics business unit within the MAHLE Group, the acquisition of the majority share of Letrika is of central importance to us,” explains Prof. Dr. Heinz Junker, Chairman of the MAHLE Management Board and CEO. “We want to generate sales of around EUR 500 million in this area in the medium term, and achieve many times this figure in the long term.”
Letrika benefits from a good reputation in the industry segment in terms of product expertise and production quality. The cooperation between Letrika R&D and the MAHLE Group’s advanced engineering is to be discussed as soon as possible. “We very much welcome the positive cooperation with the Letrika management team and, as far as possible, intend to strengthen and further expand the existing activities at all Letrika locations following the completion of the transaction,” continues Prof. Junker.
MAHLE has a local presence in all major world markets. In 2014, some 65,000 employees at 140 production locations are expected to generate sales of around EUR 10 billion. At ten major research and development centers in Germany, Great Britain, the USA, Brazil, Japan, China, and India, more than 4,000 development engineers and technicians are working on forward-looking concepts, products, and systems.
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