The globally active German automotive supplier Leoni, with more than 100,000 employees, is now owned by the Austrian. In 2023 it will appear in black again under the new owner. But the future strategy still needs to be refined.
Somehow it ‘happened’ to Stefan Pierer. The oo. Industrielle (KTM, Pankl, etc.) bought a package of shares (“it was so cheap”) in the German Leoni AG in 2020. He increased his stake and was suddenly the largest individual shareholder in the manufacturer of electrical systems and wiring harnesses with more than 15%.
But Leoni suffered heavy losses, so management wanted to sell the cable division (with a turnover of €1.3 billion) to Thais. The deal collapsed at the end of 2022 and Leoni was threatened with bankruptcy.
‘The banks then came to me because I was familiar with the area and asked if I was confident enough to carry out the restructuring.’ First there was a capital reduction and the delisting of the stock exchange, with the existing shareholders losing their contribution. (also Pier). In return, the banks gave up money, continued financing and Pierer put 150 million of his own money into the company.
In total, €800 to €900 million flowed into the company, and the equity ratio is 25-30 percent. As of this year, Pierer is the sole owner of the Nuremberg-based automotive supplier with a turnover of 5.7 billion euros and 105,000 employees, 48 factories in 27 countries.
KTM man Klaus Rinnerberger became CEO. Pierer supporters and Magna Europa boss Günther Apfalter join the supervisory board. “We are closing 2023 on a positive note,” says the Neo owner happily. The year before there was a loss of half a billion euros.
He takes care of the strategy and makes the management work. “We need to get more involved with the big Chinese automakers.” He also wants to use his good contacts in China and India (where Pankl and KTM are affiliated) for Leoni. To this end, Pierer wants to enter into collaborations and mutual participation is also possible.
“If a partner joins us, I have agreed with the banks that they will receive money,” he explains. In Europe they are number one in the field of electrical on-board systems and wiring harnesses. But he does not rule out moving production to countries with lower labor costs.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
