HKR Seuffer Automotive GmbH & Co. KG’s business has been sold to a German-Korean consortium of investors consisting of KRAH Unternehmensholding GmbH + Co. KG and HyoSeong Electric Co., Ltd. The acquisition perimeter also includes the 50 % stake in the Chinese joint venture Shanghai Krah Seuffer Electronics Co. Ltd. The sale and purchase agreement was signed on 7 March 2019. The parties agreed to keep silent on the terms of the transaction. The transaction is expected to be closed in April 2019.
For more than 20 years, HKR has been developing and producing innovative power electronics for high voltage purposes in the automotive sector. The core competences of HKR lie in the control of Electromagnetic Compatibility (EMC), high currents and high temperatures in applications such as cooling fans, interior fans or electrified auxiliaries. Well-known OEMs and system suppliers from Europe, Asia and the USA are among HKR’s customers.
The company was compelled to file for insolvency in November 2018 and has been sold to the consortium of investors in the course of a structured M&A process.
KRAH is a medium-sized family business with headquarters in Drolshagen, North Rhine-Westphalia, and was founded in 1970. The product range includes electronic components, particularly power resistors and electromechanical resistor assemblies for automotive, e-mobility and industrial applications. KRAH Group has more than 1,900 employees at ten sales, development and production sites in Europe, Asia and South and North America.
HyoSeong is a family business and automotive supplier with headquarters in Busan, South Korea, and was founded in 1973. The product range particularly includes blower motors for HVAC and EC applications as well as motors for use in the fields of power steering, ABS and parking brakes. HyoSeong employs more than 1,200 people worldwide at seven locations in Asia, Europe and North America.
The two strategic buyers plan to continue HKR’s current business operations and existing orders, successfully expand the business and bring their automotive expertise and networks into HKR’s business. By way of this transaction, all jobs in Kupferzell and Bitterfeld-Wolfen as well as all customer and supplier relationships can be preserved.
Dr. Michael Thiele and Dr. Nadine Ulrich advised the M&A process. A team of the Stuttgart-based law firm Menold Bezler led by Jochen Sedlitz and Jost Rudersdorf provided comprehensive legal advice on the transaction to the insolvency administrator Dr. Tibor Braun, Stuttgart. They already accompanied the previous restructuring as well as the self-administration process.