DGAP-News Gesco AG: GESCO successfully finishes balancing out its portfolio by substantial automotive shares
DGAP-News: Gesco AG / Key word(s): Disposal
GESCO successfully finishes balancing out its portfolio by substantial automotive shares
- Majority stake in VWH sold to minority shareholder
- Balanced share of automotive business in the portfolio achieved
- Outlook for 2020 as a whole unchanged
- Implementation of NEXT LEVEL strategy continues unabated
Wuppertal, 4 February 2021 - As part of a management buy-out, GESCO AG today signed a contract concerning the sale of its majority stake in VWH GmbH.
The deal calls for the disposal of the majority shareholding of 80 % in VWH GmbH. Based in Herschbach, Germany, the company provides products and services in the field of special machines and tool manufacturing (injection moulding forms, laser technology, automation and testing technology), primarily for customers in the automotive industry. VWH has been a member of the GESCO Group since 2007 and is part of the Production Process Technology segment. In total, the company generated sales of just over € 10 million in 2020.
Thomas Sturm has had a close connection with VWH for more than 25 years. Initially the company's head of sales, he continues to serve as its Managing Director to this day and has held a minority stake of 20 % since 2011.
Thomas Sturm: "As an entrepreneur, I am very pleased that we were able to reach a good solution with GESCO. I feel a very strong sense of connection with VWH and its employees. Together, we have successfully further developed our products in the past and expanded into new fields of business. That is precisely why I look forward to continuing down the current path with VWH in the future."
On 21 December 2020, GESCO reported that it would close its Mobility Technology segment in connection with the sale of six subsidiaries. By selling VWH, GESCO has now balanced out the direct automotive business in its portfolio.
The sale of VWH does not materially change the outlook for 2020 as a whole for continuing operations, which was last updated in December 2020. The Executive Board continues to expect Group sales of roughly € 400 million and Group net income for the year after minority interest from continuing operations of roughly € 5 million.