In a major consolidation of the European thermal and acoustic automotive insulation business, Autoneum is to acquire the automotive business of Borgers for €117 million.

The transaction is expected to close in April following antitrust clearance and will initially be financed through a new credit facility in addition to the syndicated loan of CHF 350 million Autoneum renewed in October 2022.

 A capital increase in the amount of approximately CHF 100 million is planned for the long-term refinancing of the acquisition.

Autoneum’s two largest shareholders, Artemis Beteiligungen and PCS Holding, have agreed to participate in the capital increase in proportion to their current shareholdings. Even taking into account the aforementioned capital increase, the transaction will generate a positive earnings per share contribution from the outset.

Borgers specialises in textile acoustics protection, insulation and trim for vehicles with a complementary product and customer range for Autoneum.

It is the European leader in textile wheel arch liners and its range is distinguished by sustainable and fully recyclable products. In 2021, the Borgers Automotive Group generated revenue of €610 million with around 4,700 employees.

Autoneum is acquiring Borgers from insolvency and has agreed new pricing and delivery terms with its customers. These will ensure sustained profitability and the further development of product and process technologies in both the short and long term.

“The acquisition of Borgers is based on a sound and convincing industrial logic,” said Matthias Holzammer, Autoneum CEO. “The technologies and product portfolios of the two companies complement each other ideally. At its headquarters in Bocholt, Germany, Borgers has a high level of competence in the field of materials and product development with a technical centre as well as highly qualified and committed employees.

“For this reason, we intend to integrate Borgers into our existing global product development and customer strategy. We consider the Bocholt location as a technical centre of competence for the wheel arch liners and trunk systems as well as for product and process development of textile carrier materials based on needlepunch technology. Ensuring a high-quality supply of the relevant components to customers is a top priority, both in the short and long term.”

www.autoneum.com