BALDA
European plants to be acquired by industrial holding? / Future ownership unclear / 250 job losses in Germany
Another ownership conundrum at a European plastics industry company could be shaping up, this time involving the mobile phone moulding business of Balda Solutions Europe (Bad Oeynhausen / Germany), including the Bad Oeynhausen units Balda Solutions Deutschland and toolmaker Balda Werkzeugbau and Balda Solutions Hungaria at Veszprém / Hungary.
In late December 2007, Balda CEO Joachim Gut said the company had agreed to sell the units in Germany and Hungary to KS Plastic Solutions, in order to focus on Asia, where it now exclusively produces all of its touch screens. Balda has production facilities in China and India, in addition to Brazil and Malaysia.
In the meantime, doubts have emerged as to the identity of the buyer. KS Plastics Solutions uses the title of a German limited company but does not appear to be registered in Germany. It is also not clear whether this company intends to keep the Balda assets or pass them on. While nothing has been heard from KS thus far, the German industrial holding Aurelius (Munich; www.aureliusinvest.de) is now said to be interested in taking over the businesses – from the current owner. It already has addressed the works councils.
An Aurelius spokeswoman told Plasteurope.com that Aurelius (which bills itself as a long-term investor that focuses on “turning the target into a profitable company and positioning it on the market for future profitable growth”) is currently conducting due diligence on the KS Plastic Solutions business and that this will not be concluded for four to five weeks. According to reports, private equity companies, including Gulf States interests, also could be part of a possible buyout consortium.
The only thing that does seem clear is that up to 250 of the 385 jobs at Balda Solutions in Germany will be eliminated. The cuts already were part of a restructuring planned agreed under Balda’s management. By contrast, the 70 remaining jobs at the tool-making unit are safe, the unit’s works council said. Employee representatives told the local press that they were “extremely disappointed” with Balda management. In September 2007, Gut promised to sell only to an investor that would use the company’s available capacities.
In an interview with the news agency Bloomberg, not directly related to the current discussion over ownership of the German and Hungarian mobile segments, the CEO said he sees Balda as a “possible takeover target for an Asian electronics maker.” He said the company could be “interesting to many” Asian players without touch screen technologies. Analysts, however, have suggested that this view might be too optimistic.
In late December 2007, Balda CEO Joachim Gut said the company had agreed to sell the units in Germany and Hungary to KS Plastic Solutions, in order to focus on Asia, where it now exclusively produces all of its touch screens. Balda has production facilities in China and India, in addition to Brazil and Malaysia.
In the meantime, doubts have emerged as to the identity of the buyer. KS Plastics Solutions uses the title of a German limited company but does not appear to be registered in Germany. It is also not clear whether this company intends to keep the Balda assets or pass them on. While nothing has been heard from KS thus far, the German industrial holding Aurelius (Munich; www.aureliusinvest.de) is now said to be interested in taking over the businesses – from the current owner. It already has addressed the works councils.
An Aurelius spokeswoman told Plasteurope.com that Aurelius (which bills itself as a long-term investor that focuses on “turning the target into a profitable company and positioning it on the market for future profitable growth”) is currently conducting due diligence on the KS Plastic Solutions business and that this will not be concluded for four to five weeks. According to reports, private equity companies, including Gulf States interests, also could be part of a possible buyout consortium.
The only thing that does seem clear is that up to 250 of the 385 jobs at Balda Solutions in Germany will be eliminated. The cuts already were part of a restructuring planned agreed under Balda’s management. By contrast, the 70 remaining jobs at the tool-making unit are safe, the unit’s works council said. Employee representatives told the local press that they were “extremely disappointed” with Balda management. In September 2007, Gut promised to sell only to an investor that would use the company’s available capacities.
In an interview with the news agency Bloomberg, not directly related to the current discussion over ownership of the German and Hungarian mobile segments, the CEO said he sees Balda as a “possible takeover target for an Asian electronics maker.” He said the company could be “interesting to many” Asian players without touch screen technologies. Analysts, however, have suggested that this view might be too optimistic.
10.01.2008 Plasteurope.com [209914]
Published on 10.01.2008
German version of this article...