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Hirschmann's managers lead €115 mln buyout

Managers at the industrial networking specialist Hirschmann Electronics have bought the company from its parent, Rheinmetall, with the backing of a private equity investor, HgCapital.

The deal, which is subject to approval from the competition authorities, is worth €115 million ($156.3 million). Hirschmann Electronics employs about 1,750 people and last year generated sales worth more than €280 million ($380.7 million). It has factories in Germany and Hungary and, in addition to its industrial networking products, also supplies control systems for construction machinery, television transmission equipment, and sophisticated car-antenna electronics. Its sale is the final step in a programme by Rheinmetall to sell off its electronics operations so that it can focus on the automotive and defence sectors. Reinhard Sitzmann, who chairs Hirschmann's management board, describes the change in ownership as "a vast opportunity". He says that HgCapital "will provide sustained support for the ambitious growth goals and the ongoing globalisation of the Hirschmann product divisions. At the same time, our unchanged management team is an assurance of continuity in customer relations." (drives.co.uk)