The Stuttgart-based Mahle Group has signed an agreement for the acquisition of the majority share in Slovenian group Letrika d.d.
24 Jun 2014 | 5642 Views | By Autocar Pro News Desk
The Stuttgart-based Mahle Group has signed an agreement for the acquisition of the majority share in Slovenian group Letrika d.d. The conclusion of the agreement is subject to approval by the responsible antitrust and supervisory authorities. Mahle expects this to be granted in the second half of 2014.
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The Stuttgart-based Mahle Group has signed an agreement for the acquisition of the majority share in Slovenian group Letrika d.d. The conclusion of the agreement is subject to approval by the responsible antitrust and supervisory authorities. Mahle expects this to be granted in the second half of 2014.
The acquisition of approximately 54 percent is part of a privatisation offensive targeting Slovenian companies that have until now been under majority state control. In 2013, Letrika generated sales of 242.5 million euros (Rs 1,980 crore) with its 2,416 employees at seven production and development locations in Slovenia, Bosnia and Herzegovina, Belarus, China, and Brazil.
Headquartered in Šempeter pri Gorici/Slovenia, the company develops and manufactures innovative electric motors, starter motors, generators, and electrical drive systems for customers in the passenger car, commercial vehicle, and agricultural and construction machinery market segments, as well as other industrial applications.
“As part of our medium- and long-term strategy to establish a mechatronics/electrics business unit within the Mahle Group, the acquisition of the majority share of Letrika is of central importance to us,” said Prof. Dr. Heinz Junker, chairman of the Mahle Management Board and CEO. “We want to generate sales of around 500 million euros (Rs 4,091 crore) in this area in the medium term, and achieve many times this figure in the long term.”
Letrika is understood to enjoy a good reputation for its product expertise and production quality. The cooperation between Letrika R&D and the Mahle Group’s advanced engineering is to be discussed as soon as possible. “We very much welcome the positive cooperation with the Letrika management team and, as far as possible, intend to strengthen and further expand the existing activities at all Letrika locations following the completion of the transaction,” added Prof. Junker.
Mahle has a local presence in all major world markets. In 2014, some 65,000 employees at 140 production locations are expected to generate sales of around 10 billion euros (Rs 81,830 crore). At 10 major R&D centres in Germany, Great Britain, the USA, Brazil, India, Japan and China, more than 4,000 development engineers and technicians are working on forward-looking concepts, products, and systems.
Photograph: Prof. Dr. Heinz Junker, chairman of the Mahle Management Board and CEO.