SOURCE: Preh, Inc.

Preh, Inc.

April 08, 2011 11:42 ET

Joyson and Preh Forge a High-Growth Technology Company in the Automotive Market

Joyson Acquires Majority, Preh Management and Deutsche Beteiligungs AG Substantially Remain Partners -- Continuity for Customers and Employees

NOVI, MI--(Marketwire - Apr 8, 2011) - Joyson Investment Holding Co., Ltd, Ningbo (China), will become majority partner of Preh GmbH, Bad Neustadt a.d. Saale. Joyson, a privately owned automotive electronics supplier, will have a stake of 74.9 percent. The current majority partner, Deutsche Beteiligungs AG, Frankfurt am Main -- including funds administered by the DBAG-Group and management -- retain a minority share of 25.1 percent.

The new, dynamically growing technology company, with more than EUR 500 million in sales, will become an automotive specialist with excellent market access to Europe, North America and China. Continuity for customers and employees is assured as Preh management will continue to control and further expand from Bad Neustadt the global activities of Joyson and Preh in the automotive electronics market.

The majority buyout follows a joint venture in which Joyson and Preh entered the Chinese market in August 2010. The move is designed to re-enforce both companies' market potential in Europe, North America and Asia. At the same time, Preh's equity ratio is substantially strengthened by a significant capital increase, rising to more than 40 percent, enabling the company to make use of attractive growth potential in every market concerned. Confidentiality has been agreed upon by all parties involved as to the detailed arrangements of the transaction. The execution of the contract is subject to approval by all relevant authorities.

The DBAG-Group acquired Preh in October 2003, together with Preh management, in a management buyout. With its commitment, the DBAG-Group supported a sustainable growth and globalization strategy for Preh: in 2003, Preh's automotive sales were EUR 169 million. By 2010, they doubled to more than EUR 343 million, despite the industry crisis.

Two fast-growing partners join forces: continuity and dynamic development

The future composition of Preh's supervisory board will demonstrate continuity with regard to the philosophy of the company. Dr. Rolf Scheffels, board member of the Deutsche Beteiligungs AG, will remain chairman.

"During our more than seven years' commitment to Preh, we had several options to sell Preh successfully. However, as we always pursue a sustainable development of our holdings, together we decided in favor of a new partner who offered the best possibilities in terms of a continuing growth strategy," Dr. Scheffels said.

"In the transition period, we will continue to play a constructive role, even in the new set-up as partner," he continued.

In this context, Mr. Scheffels recalls developments that were propelled under the auspices of the DBAG-Group and which had been implemented by management. In this way, Preh has turned into an exclusive automotive supplier that has fundamentally improved its competitiveness through investments in new locations in North America and Eastern Europe, as well as in new product groups.

Ideal fit of capabilities and market access

Mr. Jeff Wang, entrepreneur and chairman of Joyson, said on the occasion of the transaction, "With our joint venture, we have gotten to know and to respect Preh, and because of Preh's high-class capabilities, we decided in favor of a majority buyout. Joyson and Preh are an ideal fit because of their roots in different market regions. We will offer globally to our joint customers premium class quality -- cost-efficient driver controls and sensor systems for the car interior."

Preh remains Preh -- but with new market opportunities in China

Dr. Michael Roesnick, CEO of Preh GmbH, stated, "China has more and more developed into the decisive engine for the global car industry. Therefore, the joint venture with Joyson was a logical next step in our global strategy, starting with our facilities in Portugal, Mexico and Romania, finally leading us to China. Joyson's cooperation in the joint venture has led them to make a commitment to Preh, representing a great opportunity for us.

"Together with the majority partner Joyson, Preh will substantially improve its market position and open new market opportunities, particularly in China," Roesnick continued. "At the same time, it is still true, as we already said when the commitment began with the Deutsche Beteiligungs AG: Preh remains Preh! Our company is driven by its unique sense of innovation as well as the outstanding commitment by our employees. Together with Joyson we want to ensure a maximum of continuity, as well as independence, in order to achieve long-term company success."

About Preh
Founded in 1919, Preh is a globally operating group of enterprises with more than 2,500 employees in Germany, Portugal, Mexico, the U.S.A., Romania and China. Preh is headquartered in Bad Neustadt a.d. Saale. The company achieved revenues of EUR 351 million in 2010. Preh's development and production competencies focus on vehicle interior control systems, sensor systems, electronic control units and assembly systems for the world's leading vehicle manufacturers. For more information, please visit: http://www.preh.com.

About Joyson Automotive
Joyson Automotive is part of Joyson Group, Ningbo (China) which, besides its automotive unit, also has a real estate division. In 2010 with 1,800 employees, it had total sales of EUR 198 million. Joyson Automotive comprises the operating companies Joyson Automotive Ningbo, Changchun Joyson, Bosen Corporation Ningbo and Huade Plastics Shanghai. It achieved total sales of EUR 125 million in 2010.

The Deutsche Beteiligungs AG (DBAG) is one of the leading German private-equity companies. It invests in successful companies which play a dominant role with its products and services in their respective markets. DBAG has been stock-listed since 1985 and funds its investments from its own and parallel sources. It manages assets with a value of about EUR 900 million.

Contact Information

  • CONTACT:
    Nick Lontscharitsch
    Preh, Inc.
    (248) 381-3820