German parts supplier Brose Fahrzeugteile is considering selling a stake in its business amid industry headwinds, Bloomberg reported citing sources.
Sources said the family-owned firm has held talks with potential advisers about a transaction, but the deliberations are at an early stage and Brose may choose not to proceed.
A company spokesperson did not immediately reply to Bloomberg’s request for comment.
The reported deliberations at Brose come amid widespread restructuring across European auto supply chains.
Suppliers across Europe have been forced into restructurings as Western carmakers lose ground in China and European demand remains subdued during the transition to electric vehicles.
Brose, founded in 1908 and headquartered in Coburg, produces systems for doors, liftgates and seats, alongside electric motors used in steering, thermal management and micromobility applications such as e-scooters.
The group employs around 31,000 people across 24 countries.
In 2024 it recorded a net loss of €142m ($166m) against a backdrop of market downturns and extensive restructuring.
Sales dipped to €7.7bn, a €200m decrease from the previous year, while operating losses amounted to €14m.
Despite these setbacks, the company’s free cash flow saw an upturn, reaching €137m due to reduced investments and asset sales. The equity ratio remained at 48%.
At the time of announcing the results in May, Brose said it does not expect any growth in its core business in 2025 and anticipates stagnating group sales.
The firm is targeting a 20% reduction in staff costs by the end of 2026 as part of broader cost-cutting measures.
The company sold its e-bike business to Yamaha Motor earlier this year and, in December 2023, renewed the 25-year contract for its Shanghai joint venture with HASCO.
Earlier this month, Maximilian Stoschek, son of long-time company leader Michael Stoschek, assumed the chair of the company’s administrative board.
“Brose exploring partial stake sale – report” was originally created and published by Just Auto, a GlobalData owned brand.
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