TBC NETHERLANDS TAKES OVER FRAUENTHAL AUTOMOTIVE SALES GMBH’S OPERATIONS IN AUSTRIA, FRANCE AND ROMANIA

TBC NETHERLANDS TAKES OVER FRAUENTHAL AUTOMOTIVE SALES GMBH’S OPERATIONS IN AUSTRIA, FRANCE AND ROMANIA

The Austrian Frauenthal Group today agreed on the sale of a large part of its leaf springs and stabilisers business, part of Frauenthal’s Automotive segment, to TBC Netherlands, an affiliate of Hendrickson Ventures Corporation.

According to the share purchase agreement executed today, TBC Netherlands shall acquire the leaf springs and stabilisers operations in Austria, France and Romania. As part of the transaction, Frauenthal is expecting to receive net proceeds in the range of €20 million to €25 million, subject to the effective working capital and net debt position of the activities upon closing. The activity in Portugal, specialised in the production of light springs, will remain with the Frauenthal Group.

The closing of the transaction is subject to customary conditions, including merger control clearance. Closing is expected to occur during the third quarter of 2014.

“With this sale we are consequently following our strategy in the automotive segment to focus on our product range on air reservoirs, U-bolts and metal parts (Gnotec Group) and to further expand in this areas”, says Martin Sailer, Executive Board Member of Frauenthal Holding AG.

TBC Netherlands / Hendrickson
Hendrickson is a leading global manufacturer and supplier of heavy-duty suspensions, integrated axle systems, springs and bumpers. “Being privately held, Hendrickson focuses on investments that can provide long term business growth and as such, is excited about adding this business to its group of companies. We look forward to working together to give our customers the best products and service in this segment”, says a speaker of Hendrickson. TBC Netherlands is an affiliate of Hendrickson.

Founded in 1913 Hendrickson has been part of The Boler Company since 1977. With its headquarters in Illinois (US), Hendrickson is conducting business for the heavy-duty vehicle industry around the globe, with subsidiaries located in the USA, Canada, Mexico, China, Japan, India, Australia, UK, Spain and Turkey.

Hendrickson as a global player and top supplier will bring new market opportunities to the European sites.

Frauenthal Automotive
Frauenthal Automotive is one of two divisions of the Frauenthal Group and a leading premium supplier and development partner to the European commercial vehicle industry. This division accounted for 53% of consolidated revenues in the first quarter 2014. The improvement in the divisions’ earnings resulted from the acquisition of the Gnotec Group in 2013 and the restructuring of the air tanks business. Nevertheless the Automotive Division was and is facing a very competitive environment for leaf springs and stabilisers characterized by considerable overcapacity, declining exports and price pressure in Europe.

“As the steel spring business has become a global business, and being focused in the European market place, the management of Frauenthal decided to exit the business and to find the best owner to strategically develop the business going forward. This divestiture is only the third in over 20 years of Frauenthal’s history as a public company and will further strengthen our group”, says Hannes Winkler, president and majority shareholder representative of Frauenthal Group.

Contact:
Martin Sailer, m.sailer@frauenthal.at
Erika Hochrieser, e.hochrieser@frauenthal.at
1090 Vienna, Rooseveltplatz10
Phone: + 43 1 505 42 06

EY Germany acted as sole M&A advisor to Frauenthal Group in this transaction. BDO Austria GmbH served as its financial advisor. DORDA BRUGGER JORDIS Rechtsanwaelte GmbH rendered services to Frauenthal Group as legal advisor