Bosch and Mahle sell turbocharger business

The buyer intends to take over the entire business including its approximately 1'300 employees (August 2017) across all the locations. A contract for this purpose was signed on September 6th 2017 by the parties involved. The parties have agreed not to disclose the purchase price or any other details of the sales contract. Completion of the sale is subject to approval by the responsible antitrust authorities. FountainVest plans to further expand the turbocharger business and to position BMTS for sustainable growth. “We are convinced that the market for turbochargers will continue to grow in the years ahead given this product will play a key role in emission reduction solutions. With its solid R&D foundation and advanced manufacturing technology, BMTS is well positioned to capitalize on this favorable industry trend. As part of our investment theme, we will continue to invest in BMTS to ensure the company will grow successfully and achieve a strong market position.” explained Mr. Frank Tang, Co-Founder and CEO of Fountainvest. Further investment required The international market for turbochargers is also expected to continue to grow in the years ahead as the trend toward smaller engines fitted with turbochargers, especially for hybrid drives, remains strong. BMTS has already benefited from this market trend. However, the company has not yet reached the scale needed to achieve sustainable success in this market environment. Bosch and Mahle do not intend to drive forward the further expansion of BMTS themselves, an expansion which is necessary to successfully secure the company’s long-term position in the market. The two companies revealed their plans for the sale of the joint subsidiary at the beginning of 2017. “We are pleased to have found a buyer, FountainVest, who has the necessary financial means, commitment, and successful investment track record in the automotive industry to further develop BMTS, bringing it lasting success,” announced Wolf-Henning Scheider, Chairman of the MAHLE Management Board and CEO. “The new owner will open up important prospects and growth opportunities for BMTS in attractive markets such as China and North America,” added Dr. Rolf Bulander, Chairman of the business sector Mobility Solutions at Bosch. The joint venture was founded by Bosch and MAHLE in 2008. Nowadays, around 1'300 employees at the BMTS locations in Stuttgart and Blaichach in Germany and in St. Michael/Austria and Shanghai/China develop and produce turbochargers for the manufacturers of passenger and commercial vehicles.