Carraro sells its non-core assets of miniGears
An important step towards a greater focus on the core business
The gear activities for the core business will remain within the Group.
By May 31 the miniGears plants will pass onto the German fund Finatem, controlling the Herzog GmbH company, specialized in gear manufacturing.
The miniGears Padua plant will have the chance to get new market opportunities on an indipendent growth path.
The agreement will contribute to a further improvement of the Group's financial position.
Campodarsego (Padova), 27 March 2014 – A binding agreement for the sale of the assets miniGears of Padua and Suzhou (China) was signed today between MG Mini Gears S.p.A, a Carraro Group company, and the German fund Finatem.
More in detail, it was agreed that, as a result of this transaction, the two production companies, specialized in the production of powder metal gears, will cooperate jointly with the Herzog GmbH company - focused on components and gears, based in southern Germany - already controlled by Finatem.
"This is an important step for the Group towards a further focus on our core business, which in these years registered very positive results both in terms of volumes and margins and that shows attractive growth perspectives already in the medium term - said Enrico Carraro, Chairman of the Group - The sale of miniGears allows us on one hand to reduce our debt and on the other hand to accelerate the investment plan in progress, amounting to 150 million Euro, with the objective of enhancing our competitiveness in Italy and abroad”.
"During the setting of this operation we chose an industrial partner that could ensure business continuity and growth perspectives - added Enrico Carraro - The future of miniGears with the German company Herzog, with strong expertise on gears, will allow the two plants in Padua and Suzhou to find new development areas in technological sectors similar to its own ones, in the frame of diversified and complementary application markets".