GF Automotive, a division of Georg Fischer, is to divest its non-core gravity die-casting business in Herzogenburg (Austria) to the present managers in the framework of a management buyout. The transaction allows GF Automotive to fully focus on its core iron sand casting and light metal high pressure die-casting activities.
The company, based in Herzogenburg, is to be sold in a share deal to Kimaz GmbH, owned by the present managers of the Herzogenburg gravity die-casting plant.
The deal takes effect retroactively on 1 January 2014. The transaction will result in a decrease in the annual sales of GF Automotive of approximately CHF 70 million. The transaction has no impact on the 2013 operating result (EBIT), but leads to a one-off extraordinary charge of CHF 26 million on the net profit.
Yves Serra, CEO of Georg Fischer, comments: "The solution found for the gravity die-casting activity in Herzogenburg ensures continuity for our customers and our workforce. It also allows GF Automotive to fully focus on its core activities."
Andreas Zick, co-owner of the Kimaz GmbH, declares: “We believe in the potential of gravity die-casting, and are convinced that in cooperation with our workforce the plant in Herzogenburg will stay a reliable partner for our customers and suppliers as well as a significant regional employer.”
The gravity die-casting business in Herzogenburg is specialized in manufacturing aluminum cast components for the passenger vehicle and truck industry. The company employs about 200 people. There are two other plants at GF Herzogenburg, iron casting and aluminum pressure die-casting, which are not affected by the transaction. Georg Fischer will provide services and facility management for the new owner.