Relay business to be sold for 10 million euro, transaction likely to close by year-end
19 Nov 2019 | 7138 Views | By Autocar Professional Bureau
In sync with the buzzing electric mobility and autonomous driving trends, global automotive supplier, Hella is hiving off its relay business. Hella will now sell its business to the Chinese relay manufacturer Hongfa for 10 million euro and the transaction is set to close by year-end.
Hella has clocked ...
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In sync with the buzzing electric mobility and autonomous driving trends, global automotive supplier, Hella is hiving off its relay business. Hella will now sell its business to the Chinese relay manufacturer Hongfa for 10 million euro and the transaction is set to close by year-end.
Hella has clocked sales of 43 million euro in the relay business thus far and the sale to Hongfa is in line with their overall objective. Explaining the move, Dr Rolf Breidenbach, CEO, Hella says, “In the years to come, we want to concentrate even more strongly on the central future topics of the automotive industry. We see these topics as being primarily those of electric mobility and autonomous driving. So we are delighted to have found in Hongfa an experienced partner who will successfully further develop our relay business."
Meanwhile for Hongfa, the buy is likely to boost its share globally. Guo Manjin, Chairman of the Hongfa Group, says, "The acquisition of Hella's relay business will enable us to further expand our market position as one of the world's leading relay manufacturers. The transaction will enable us to secure the established market and product advantages of Hella in the area of relays."
Hongfa is one of the world's largest suppliers of relays. In 2018, the company achieved total sales of around € 1.2 billion.
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