HÖRMANN Group intends to acquire a division from Leadec

Kirchseeon-based HÖRMANN Industries GmbH (corporate bond, German Securities Code Number (WKN): A2AAZG) has signed an agreement with Leadec Engineering GmbH, Chemnitz, on the acquisition of its Development Road and Rail, excluding Prototyping (Engineering) division. The agreement involves the HÖRMANN Group acquiring the division’s business operations and all tangible and intangible assets from Leadec Engineering GmbH as well as around 110 employees at the Chemnitz, Dresden, Dessau and Munich sites, most of them highly skilled engineers and designers. The agreement will come into effect subject to individual conditions including anti-trust approval.

The Development Road and Rail division is an established service provider in the development and technical design of road and rail vehicles for international vehicle manufacturers. The acquisition represents a significant boost for vehicle development at the Engineering division of HÖRMANN Industries GmbH and will increase engineering and design capacity to more than 250 employees, especially at the company’s Chemnitz site. It also offers considerable potential for synergies with the Automotive division.

Dr.-Ing. Michael Radke, CEO of HÖRMANN Industries GmbH, commented, ‘As announced, our objective for the Engineering division is to build up further development capacity for automotive engineering. The acquisition of the Development Road and Rail department is another important step towards achieving that goal following the takeover of et-parts GmbH last year. Moreover, the expertise of our new colleagues will help to increase synergies with Automotive, our biggest division.’

The strategically important transaction will not result in any change to HÖRMANN Industries GmbH’s earnings forecast for the 2017 financial year. HÖRMANN Industries GmbH is expecting the transaction to take place in November 2017.