SOURCE: Preh, Inc.

Preh, Inc.

June 29, 2011 12:21 ET

Majority Stake by Joyson in Preh Approved by German and Chinese Authorities

Contract Signed in the Presence of Federal Economics Minister Philipp Rosler and a High-Ranking Chinese Economic Delegation

NOVI, MI--(Marketwire - Jun 29, 2011) - The acquisition of a majority stake in Preh GmbH, Bad Neustadt, by Joyson Investment Holding Co., Ltd, Ningbo (China) announced on April 8, 2011, has now become legally effective following approval by the respective authorities.

As a consequence, Joyson now holds a stake of 74.9 percent in Preh; the remaining 25.1 percent is held by the previous majority partner, Deutsche Beteiligungs AG, Frankfurt am Main -- including funds administered by the DBAG-Group -- and management.

The closing of the contract took place on the occasion of the 6th German-Chinese Forum for Economic and Technological Cooperation held in Berlin. Attending the signing ceremony were Federal Minister for Economics and Technology Dr. Philipp Rösler, and the Deputy Chairman of the National Development and Reform Commission Zhang Xiaoqiang.

For Preh, the alliance with Joyson represents a decisive step in accessing the growth market of China. At the same time, the change in control points toward maximum continuity both in terms of strategy and personnel.

In addition to the three unchanged management board members (CEO: Dr. Michael Roesnick; CFO: Dr. Ernst-Rudolf Bauer and Sales/Marketing/Project Management: Christoph Hummel), the board is now strengthened by Charlie Cai, with responsibility for the Chinese market. Supervisory board chairman will continue to be Dr. Rolf Scheffels from DBAG. Besides the two Joyson representatives, Jeff Wang and Jimmy Guo, other members include two employee representatives, as well as automotive expert Dr. Willibert Schleuter. Within the Joyson Group, Preh assumes the leadership role for global automotive electronics activities.

Preh's dynamic growth rate is continuing in the first half of the current fiscal year, with sales surging over 20 percent, compared with the same period the previous year. For all of 2011, Preh management is expecting sales to grow robustly to over EUR 400 million (automotive sales in 2010: EUR 343 million).

"The alliance with our Chinese investor Joyson gives birth to a dynamically growing technology company with more than EUR 500 million in sales," said Preh CEO Dr. Michael Roesnick.

"Thanks to the complementary product portfolios and their roots in differing market regions, Joyson and Preh make an ideal fit. We will use this as a stepping stone to expand together in the automotive markets of Europe, North America, and Asia. At the same time, the composition of the management and supervisory boards -- along with the strong technological lead of Preh within the Joyson Group -- will ensure maximum continuity for our customers and employees alike."

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. 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 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, and in 2010 with 1,800 employees achieved 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.

About DBAG AG

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 their products and services in their respective markets. DBAG has been stock exchange 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