Lighting specialist, Hella, is selling two of its businesses to Swedish wholesaler, Mekonomen.
Hella has sold Danish wholesale company, FTZ Autodele & Verktoj (FTZ), and Poland-based, Inter-Team, for €395 million on a cash- and debt-free basis. Also, consideration equivalent to profits generated from 30 November 2017 to completion of the transaction will be paid to Hella.
The sale is subject to approval by the relevant antitrust authorities and is expected to close Q3 2018.
“With Mekonomen, a renowned wholesaler will take over our activities in Denmark and Poland, which will strategically develop the business,” said Hella Managing Director, Dr Werner Benade.
“We will systematically focus the aftermarket segment on the independent spare parts business and innovative workshop equipment. As part of this, we are accelerating the interaction between the divisions and opening up digital business models,” he said.
“Through the acquisition of FTZ and Inter-Team, we strengthen our position as a leading automotive spare-parts distributor in the Nordic region and take the step into Europe,” said Mekonomen CEO, Pehr Oscarson.
“The acquisition is in line with our strategy of playing a central role in the ongoing consolidation in Europe. These are two well-run companies that will continue to develop within the framework of existing corporate structures and brands as standalone companies in the Group.”
FTZ and Inter-Team employ an approximate total of 2,500 people. The two wholesalers achieved total sales of around €480 million in the 2016-17 financial year, corresponding to about seven per cent of Hella’s group consolidated sales.
Earlier this year, Hella launched a joint venture dealing in electronic components with Chinese enterprise, Beijing Hainachuan Automotive Parts.