Friwo separates from remaining production at the Ostbevern site
Friwo, a manufacturer of chargers and e-drive solutions, says it is divesting its remaining production activities at the site in Ostbevern, Germany.
The new owner, Hamburg-based investment company Private Assets SE & Co. KGaA, is taking over the Ostbevern production site and will act as a contract manufacturer for Friwo products manufactured in Europe, the employees involved in these activities will also be taken on by the buyer, a press release reads.
Private Assets plans to expand the acquired production facilities by acquiring additional customers in the coming years. The parties have agreed not to disclose the purchase price.
However, Friwo says that it remains committed to the Ostbevern site. The other activities of the company located there, such as Group administration, sales and product management as well as research & development, are largely unaffected by the transaction. The land and real estate will also remain in the company’s ownership.
“We are delighted to have found an ideal partner in Private Assets for our production facilities remaining in Ostbevern and the employees involved. The transaction will help FRIWO to focus more strongly on the growth areas of e-mobility and will make a noticeable contribution to improved cost efficiency from 2024. Our commitment to the Ostbevern site as a regional anchor remains strong,” commented Rolf Schwirz, CEO of FRIWO AG, on the news.
“As a quality leader with production in Germany, Friwo's EMS division is in an excellent position to succeed independently on the market,” says Private Assets CEO Sven Dübbers, in the press release. “We still see great growth potential in the third-party business in particular. We are focusing on consistent customer orientation in order to fully exploit this potential.”
The transaction is set to noticeably improve Friwo's cost efficiency from 2024. This and the emerging recovery in demand in Europe, as well as the substantial earnings contributions expected from the e-mobility joint venture in India and from the new US business set up in 2023, should lead to Friwo returning to a profitable growth trajectory in the coming financial year.