Translink Corporate Finance in Germany is pleased to announce that it acted as the exclusive M&A advisor to FIT Voltaira Group GmbH (former Prettl SWH Group), a subsidiary of Taiwan-based Foxconn Interconnect Technology (FIT Hon Teng) and leader in advanced sensor, connectivity, and electrification solutions for the automotive and new mobility sectors, in the acquisition of the international automotive supplier, Auto-Kabel Group.

The merger promises to provide exceptional value to mobility customers through a comprehensive product range, an extended internal value chain, and increased synergies. In 2024 Auto-Kabel Group with its 3,395 employees in 8 countries will generate total sales of above EUR400 million and is expecting to strongly grow further during the coming years.

FIT Voltaira Group successfully completed the challenging acquisition of Auto-Kabel Group, navigating the insolvent German and non-insolvent international entities to a wholly satisfying solution for the target, the insolvency administrator Martin Mucha and his Team at Grub Brugger and all parties involved.

The acquisition will happen through a wholly owned SPV of Foxconn Interconnect Technology GmbH which is a holding company of FIT Voltaira Group GmbH, wholly owned by Foxconn Interconnect Technologies Limited (“FIT”), a truly global champion in solutions encompassing connectivity solutions for EV mobility, 5G AIoT and audio applications.

Auto-Kabel Group will greatly benefit from FIT Voltaira Group’s and FIT’s strong financial background which enables the continued growth of the merged group, making it possible to navigate the volatile automotive market environment.

Following the merger, FIT Voltaira Group’s product portfolio will significantly improve in intelligent power distribution systems, innovative battery harnesses, busbars, and high-voltage vehicle electrical systems, enabling a holistic coverage and further enhance competitiveness on a global scale.

Auto-Kabel Group entered into insolvency proceedings earlier this year, mainly due to a slower than expected growth in electric vehicles. Consequently, Martin Mucha from Grub Brugger, a renowned law firm focussing on restructuring and insolvency situations was appointed as administrator. Soon after, an internationally structured sales process was initiated, with PWC and Gleiss Lutz advising on the sell side.

FIT Voltaira Group entered early into the process and was able to convince the seller and the creditors’ committee that the future of Auto-Kabel Group would be best secured by a sale to FIT Voltaira Group. In addition to Translink Corporate Finance, the transaction was advised on the buy side by Deloitte (financial and tax), Sullivan & Cromwell and Kümmerlein (both legal) as well as McKinsey (strategy).

The project was particularly complex because Auto-Kabel Group consists of 17 legal entities across 8 countries. While some of these entities are in insolvency proceedings, others are operating under normal conditions. The deal is still to be approved by local competition authorities.

This transaction is yet another example of successful buy-side advisory projects for international corporate clients performed by Translink Corporate Finance.

Ulrich Eichler, CEO of FIT Voltaira Group, said, “This acquisition marks an important milestone in our journey to become a leading provider of intelligent energy distribution systems, electrification, sensor, and connectivity solutions for the mobility industry. We strongly believe that our merger will not only increase our market presence and global reach, but also foster highly integrated and synergistic structures.”

Martin Mucha, insolvency administrator of Auto-Kabel Group, said, “Operationally, Auto-Kabel Group is in a solid position. The transition to e-mobility is well advanced and its order books are filled for many years to come. It was our goal to find the best strategic partner for the entire Auto-Kabel Group. Voltaira Group, with its financial strength, can now consolidate Auto-Kabel Group’s strong position in the market and take advantage of high demand to drive further growth in the future”.

Andreas Hüchting, Managing Partner at Translink Germany, said “It was an honour and a pleasure to work alongside the Executive Board members of our client FIT Voltaira, namely Uli Eichler and Stefan Bude, on the successful acquisition of Auto-Kabel Group. Auto-Kabel Group being in insolvency proceedings, there were additional complexities to be considered which, together with the legal and tax advisors were solved in a great joint effort”.

Tilman G. Eckstein, Partner at Translink Germany, said “I am particularly pleased that, after six months of trustworthy and intensive collaboration with the FIT. management team as well as other consultants, lawyers, and auditors, we have succeeded in supporting FIT Voltaira in the successful acquisition of the Auto-Kabel Group. This strategically important acquisition complements Voltaira’s product range in a meaningful way and completes an internationally oriented supplier group focused on further growth.”