Webasto puts battery division up for sale, weighs partial IPO in India amid debt restructuring
Summary
Struggling German supplier Webasto is close to selling its battery division, which generated €300 million in revenue, with talks underway with two strategic buyers. The company is also considering a partial IPO of the unit in India as it works to reduce debt faster than planned.
Webasto – Battery division up for sale – possible partial IPO in India
Webasto is celebrating its 125th anniversary with high debts. One co-owner draws a bitter conclusion. But two steps could bring the struggling company a lot of money.
Stockdorf. The look back was bitter.
Werner Baier, supervisory board member and great-grandson of the founder, on Thursday at the 125th anniversary celebration of the struggling automotive supplier, said :
We have lost sight of some Webasto virtues in the last ten years,
The company had expanded too aggressively into new markets and business areas on a debt-driven basis, failing to rely on partnerships as it had in the past and concentrating too much power in its headquarters. The result: Webasto is now “under the control of creditors.”
The anniversary celebration of the sliding and glass roof specialist in Stockdorf near Munich was therefore a low-key affair. However, there is also positive news. Following the agreement on a refinancing package with banks and car manufacturers last year and stable business, debt reduction could progress faster than planned thanks to two key steps.
Firstly, the company is on the verge of selling its rapidly growing battery division, which most recently generated €300 million in revenue. CEO Jörg Buchheim stated that they are in close talks with two strategic buyers and that an agreement could be reached before the end of the year.
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Webasto – Battery division up for sale – possible partial IPO in India, source
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