Rheinmetall sells Hirschmann to HgCapital for 115 million euros

Germantown, MD; Neckartenzlingen, Germany— To finish divesting its electronics business, Düsseldorf-based Rheinmetall AG recently sold Hirschmann Electronics GmbH & Co. KG to European private equity investor HgCapital for 115 million euros, including takeover of liabilities. Still subject to regulatory approval, the deal took the form of an MBO by Hirschmann’s management.

Hirschmann’s transfer, which followed the November 2003 sale of the Preh Group (Bad Neustadt, Germany) to Deutsche Beteiligungs AG, was the final step in Rheinmetall’s divestiture of its electronics group. Rheinmetall says these sales will allow it to focus on its core businesses: Kolbenschmidt Pierburg in the automotive sector and Rheinmetall DeTec in the defense industry.

As an electronics specialist, Hirschmann employs 1,750 people, and generated sales of more than 280 million euros in fiscal 2003. Hirschmann manufactures car communication systems, multimedia electronics, automation and network solutions, and electronic control systems for construction machinery.

‘For Hirschmann, this new owner represents a vast opportunity. HgCapital is an investor that will provide sustained support for the ambitious growth goals and the ongoing globalization of Hirschmann’s product divisions,” says Reinhard Sitzmann, Hirschmann’s management board chairman. “At the same time, our unchanged management team is an assurance of continuity in customer relations.”

With offices in London and Frankfurt, HG Capital has completed four acquisitions in Germany’s automotive industry in the last 14 months. HgCapital focuses on companies with enterprise values of 40-400 million euros, and specializes in industrials, media, consumer, healthcare, technology and leisure.

Control Engineering Daily News DeskJim Montague, news editorjmontague@reedbusiness.com

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