Comprehensive M&A data with integrated detailed company information

Leoni to consider options for business
Posted on Wednesday, 10 July 2019 13:35
Leoni is planning a stock market flotation, or a sale, of its wire and cable solutions (WSC) division, as part of a review of its existing group structure. While no final decision has been made, the company stated that a possible divestment or listing would allow it to focus on the development of its wiring systems business. Leoni’s chief executive, Aldo Kamper, said: “We believe that both divisions will benefit from a separation. “This creates two clearly focused businesses, whose individual market and technological developments as well as investments can be better and more quickly implemented. “ Reuters noted a potential sale or listing of the division is part of Leoni’s strategy to expand its wiring systems product range and grow its market share within the automotive industry. When talking to the news provider, Kamper said the proceeds from a possible transaction would help finance the group’s plans and create new funding opportunities. Based in Nuremberg, Leoni is a cable and harnessing manufacturing firm with over 95,000 employees across 32 countries. The company makes products such as fibre optics and automotive wiring systems for the transportation, healthcare and special vehicles industries, among others. In the three months to 31st March 2019, Leoni posted sales of EUR 1.26 billion, down from EUR 1.33 billion in the corresponding period of 2018. Within the same timeframe, the group booked earnings before interest, taxes, depreciation and amortisation of EUR 76.00 million (Q1 2018: EUR 101.00 million). The possible sale of Leoni’s WSC division comes during a period of adjustment for the company, after Kamper was brought in as chief executive in September 2018. Already this year, he scrapped the profit targets for 2019 and confirmed the group’s financial chief would be stepping down, Reuters observed. There have been 37 deals targeting communication and energy wire and cable manufacturers announced worldwide since the beginning of 2019, according to Zephyr, the M&A database published by Bureau van Dijk. In the largest of these, Spirax-Sarco Engineering agreed to acquire France’s Thermocoax Developpement for EUR 200.00 million. © Zephus Ltd