A buyer has been found for the car components business of the insolvent German company Borgers (Bocholt; www.borgers.de), with Switzerland’s Autoneum (Winterthur; www.autoneum.com) agreeing to pay EUR 117 mn for the unit, which makes insulation parts and covers for interiors and bodywork.

The Alpine firm announced that a sales agreement was signed on 6 January, and the transaction is expected to be completed in April following antitrust approval. Autoneum said it plans to use a line of credit to help fund the deal and later conduct a capital increase.

“The technologies and product portfolios of the two companies complement each other perfectly," Autoneum CEO Matthias Holzammer said.

The German company’s headquarters in Bocholt, where Borgers operates a technical centre, is to become home to a competence centre for wheel arch liners, trunk systems, and textile carrier materials based on needle felt technology.

In the 2021 financial year, Borgers Automotive reported sales of EUR 610 mn with around 4,700 employees. The company filed for insolvency in October 2022 a few months after selling its machine and tooling manufacturing division (see Plasteurope.com of 25.10.2022). Since then, Borgers has focused on its automotive business.

Related: Poor profitability pressures investment in the car industry