Feintool has significantly strengthened its market position for sophisticated fineblanking and forming technology with the acquisition of Herzing+Schroth. This German group specializes in chipless forming - a process which, like fineblanking, is used for the high-volume production of lightweight components for efficient gearboxes. Feintool plans to globally expand this new technological potential.
The purchase agreement for the acquisition was signed March 14, 2012 and will take effect following approval by the German antitrust authority. All 499 employees and 27 trainees of the companies Herzing+Schroth GmbH u. Co. KG in Obertshausen (Hessen) and Schroth Antriebselemente GmbH in Ohrdruf (Thuringia) will transfer to Feintool. Herzing+Schroth recently posted sales of approximately €70 million.
Chairman of Feintool's Board of Directors
Alexander von Witzleben comments on the acquisition
"Our objective is to further expand our global and technological standing. To this end, we're focusing on our position in the market for sophisticated fineblanking and forming technology. We are particularly pleased to have found in Herzing+Schroth, a company that is an excellent strategic fit. Its technical expertise will significantly advance Feintool's forming capabilities, a process closely related to fineblanking as well as boosting the company's geographical market development in the U.S. and Asia. For Feintool, this is the next logical step in the strategy we have been pursuing over the past three years."
Steffen Schroth, Managing Director and sole shareholder
of Herzing+Schroth comments on the sale
"Integrating my company into the Feintool Group helps to secure Herzing+Schroth's long-term future against the background of an increasingly demanding market, the globalization of our industry, and the need to finance growth. I will retain and maintain my entrepreneurial interests in Helica Fördertechnik GmbH as well as in the operating sites at the Obertshausen location."
Global trends favor high-volume, complex forming
In order to decrease CO2 emissions by reducing fuel consumption, the automotive industry relies on increased efficiency and lower vehicle weight. This includes efficient drivetrains, current examples of which include automatic and dual-clutch transmissions. In the place of heavy cast and forged parts, these transmissions increasingly use lightweight components - which, however, entail highly complex machining tasks. At the same time, high volumes are being targeted by the components industry to reduce costs. These challenges will enable the new group to profit significantly worldwide in the coming years, bolstered by its combined fineblanking and chipless forming expertise.
Adjusted financial reports after acquisition completion
On a pro forma basis, it is estimated that the Feintool Group will achieve sales of CHF 430-480 million with an EBIT margin of 4 to 6 percent for the entire 2012 fiscal year. Feintool will issue adjusted financial reports for the current fiscal year following completion of the acquisition towards the end of the second quarter.
About Feintool Group
As world market leader in fineblanking technology, Feintool is the only global supplier to offer its customers the entire process of fineblanking - from engineering through the production of machines featuring state-of-the-art press technology, plus tool design and the mass production of fineblanked components. Besides its core technology of fineblanking/forming, Feintool also offers reliable assembly equipment with its IMA brand. Headquartered in Lyss, Switzerland and with sites in the world's four largest automotive markets, the company employs over 1,300 staff worldwide. In addition, Feintool offers over 70 trainees a step up into the working world, with apprenticeships mainly for general mechanics, design engineers and commercial staff.
About HERZING+SCHROTH
HERZING+SCHROTH (H+S) is a leading developer and manufacturer of high-precision, chipless-formed components of motor vehicle drivetrains. In addition to its core chipless-forming technology, the company boasts considerable expertise in many other areas of machining technology. H+S provides its customers with support throughout the whole product lifecycle - from the very first prototypes to tool manufacture and onward through series production. In addition to HERZING+SCHROTH at the Obertshausen location (Hessen), SCHROTH Antriebselemente GmbH in Ohrdruf (Thuringia) with 499 employees, including 27 trainees, also belongs to this medium-sized, owner-managed company.
For more information, please contact Media Spokesperson Karin Labhart any time by calling +41 32 387 51 63 or e-mailing karin.labhart@feintool.com
Feintool International Holding AG
Industriering 8, CH-3250 Lyss
Phone +41 32 387 51 11
Fax +41 32 387 57 81
feintool-fim@feintool.com
www.feintool.com
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