The automotive industry is undergoing a profound transformation, and it is now affecting suppliers like ElringKlinger. The company has decided to sell two subsidiaries, impacting 650 employees.
ElringKlinger sells subsidiaries due to industry transformation
ElringKlinger, a supplier to the automotive industry, has announced the sale of two subsidiaries in response to the industry’s transformation. The company stated that the automotive sector is “undergoing a profound change, with evolving conditions requiring substantial investments to remain competitive.” One area of ElringKlinger most affected by this shift is its heat and acoustic shielding systems, which are used in vehicles to protect against heat and noise.
In light of this, the company, headquartered in Dettingen an der Erms, Reutlingen district, made the strategic decision to sell its subsidiaries located in Sevelen, Switzerland, and Buford, USA. The buyer, Certina Group, an industrial holding company based in Grünwald near Munich, is expected to finalize the acquisition by the end of this year. Certina will assume all existing obligations and continue operating the subsidiaries. Details such as the purchase price remain undisclosed.
Focus on core business and strategic refinement
The two subsidiaries being sold specialize in manufacturing products for temperature and acoustic management in vehicles. Together, these locations generated approximately €175 million in revenue last year. At the end of 2023, around 650 people were employed across both sites.
Thomas Jessulat, CEO of ElringKlinger, explained the sale as part of the company’s strategy to refine its focus. “The path is already laid out in our transformation strategy,” Jessulat said, adding that ElringKlinger is reviewing all its product groups for future potential based on market developments.
Alongside the sale, ElringKlinger also revised its financial forecast for the current year. The company no longer expects slight revenue growth, instead predicting revenue to fall slightly below last year’s level. In 2023, ElringKlinger recorded a revenue of €1.85 billion, with adjusted earnings before interest and taxes (EBIT) of over €100 million.
