© filipefrazao84 dreamstime.com Electronics Production | April 25, 2018
German Starz Group goes to Danish investor
NorthCapital Holding ApS acquired Starz Group, a manufacturer of cable sets for special vehicles who - in mid-January - had to file an insolvency petition due to, among other reasons, investments in China which required high financial advances.
"We invest in a company that is essentially profitable. The name recognition and the excellent reputation of Starz Group with regard to well-known international industry customers, but also the attractive location near Cottbus, Germany, are a good basis to again sustainably increase the business volume and profitability. Therefore, highly attractive for financial investors who pursue a buy-and-build strategy like we do!" says Werner Schmidt, Group CEO of NorthCapital Holding ApS. Insolvency administrator Bettina Schmudde, attorney-at-law and partner of the law firm White & Case, agrees: "With NorthCapital, I found, after an intensive search for investors in Germany and abroad, an investor for Starz Group who will keep all locations of the Group. Thus, the Group and its employees get a second chance they really deserve. This is also an asset for Lusatia." The international search for financially strong investors for Starz Group with its companies in Germany, Poland, Tunisia and China started immediately after the initiation of insolvency proceedings and the appointment of a temporary insolvency administrator. The business of the insolvent company Starz GmbH from Großräschen, Germany, which employs around. 170 employees, entirely continued in the meantime. The further companies of Starz Group - Starz Polska, Mecsy Tunisie, Starz Wiring System Ltd. Co. - were merely indirectly affected by the insolvency of the parent company in Germany. Starz Group which is a manufacturer of cable harnesses for special vehicles employs in total around 720 employees worldwide - two thirds of them work in production. In addition to its registered office in Brandenburg, Germany, the company also runs production sites abroad. In particular when establishing the Chinese subsidiary, there were high financial burdens which could no longer be compensated for by the otherwise profitable core business, a press release states.. The parties involved agreed to not disclose any information with regard to the amount of the purchase price.