ZF Friedrichshafen has employed Citigroup to advise on the attainable sale of its passive security methods division, individuals accustomed to the matter mentioned.
The privately held engineering group, which provides automakers together with BMW, chosen the U.S. financial institution to discover strategic choices together with a full or partial sale, in addition to a list in 2024, based on the individuals.
The enterprise could also be value greater than 3 billion euros ($3.2 billion), they mentioned, asking to not be recognized discussing confidential data.
ZF final yr introduced plans to carve out the passive security unit by the top of 2023 to open up new strategic choices, as a part of a assessment of its portfolio.
A separation would create “the best conditions to generate stronger growth and a sustainable expansion of the market position of the world’s number two in the passive safety technology business by involving external investors,” the provider mentioned.
No closing resolution on end result, timing or valuation has been made, the individuals mentioned. A consultant for ZF declined to touch upon the mandate, referring to the corporate’s earlier statements on a carve-out.
A spokesperson for Citigroup didn’t instantly present remark.
The division generated 3.8 billion euros in income in 2021 and had a market share of round 25 % of worldwide gross sales of passive security tools, ZF mentioned in October.
Its merchandise are utilized in every part from small to giant luxurious autos.
ZF takes its title from its headquarters in Friedrichshafen, the southern German city on Lake Constance, and might hint its roots again to airship pioneer Ferdinand von Zeppelin.
The firm is below strain to adapt its enterprise for the age of electrical and self-driving vehicles, which can ultimately render conventional combustion engine autos and their suppliers out of date.
No stranger to dealmaking, ZF grew to become one of many world’s largest suppliers after agreeing to purchase TRW Automotive for $12.9 billion in 2015.
Five years later, it accomplished its $7 billion acquisition of Wabco Holdings so as to add commercial-vehicle know-how.
ZF ranks third on the Automotive News Europe checklist of high 100 world suppliers, with gross sales to automakers of $39.3 billion in 2021.
Source: europe.autonews.com