ElringKlinger hones its corporate profile and disposes of two Group companies

Dettingen/Erms, October 7, 2024 +++ The automotive industry is in a state of far-reaching transition, underlying conditions are in constant flux, and significant investment is required to remain competitive. In ElringKlinger's case, this applies primarily to products in the area of thermal and acoustic shielding, particularly in Europe and North America. Against this backdrop, the Group has taken the strategic decision to divest itself of its two companies in Sevelen (CH) and Buford, GA (USA). To this end, ElringKlinger today signed an agreement on the sale of the aforementioned entities with the Certina Group, which has already gained extensive expertise in the automotive supply industry through its subsidiaries.

The closing of the transaction is expected to take place before the end of 2024, subject in particular to antitrust approval. Both parties have agreed not to disclose any further details of the contract.

Asked to comment on the decision, CEO Thomas Jessulat said, “With this transaction, we are looking to hone the Group's profile and focus our product portfolio along the path we have mapped out as part of our SHAPE30 transformation strategy. Based on market developments, we have been conducting thorough reviews of all our product groups to determine their potential for the future, which includes drawing up a comprehensive, integrated strategy for our sites."

ElringKlinger's plants in Sevelen and Buford manufacture shielding technology products for thermal and acoustic management in vehicles. In total, ElringKlinger generated revenue of approximately EUR 175 million at the two sites in 2023. At the end of 2023, the overall headcount at these sites stood at around 650.

The continuation of the companies as going concerns was one of the key issues for ElringKlinger, as CEO Thomas Jessulat emphasized: “We could only consider a solution that took into account the interests of both our customers and the local workforce. We are confident that the Certina Group fulfills these criteria."

The Certina Group is a family-owned industrial holding company based in Grünwald, Germany. Since its inception in 1992, Certina has invested according to the principles of sustainability, continuity, and corporate responsibility with a focus on European SMEs. The Group currently comprises 21 company platforms across five industries and generates revenues in excess of EUR 1 billion – employing more than 4,000 people. The Certina Group portfolio includes well-known companies from the automotive supply industry such as Isolite GmbH and QCision AG, formerly Feintool Technology AG. As part of the transaction, Certina will assume all existing obligations and continue operations at both companies.

As part of this transaction, ElringKlinger AG will recognize non-cash impairment losses in the mid to high double-digit million euro range as of the end of the third quarter of 2024. These relate primarily to reclassification in accordance with IFRS 5. The figures are provisional and unaudited.

In addition, the Management Board has reassessed its annual guidance for 2024 in the context of the transaction. ElringKlinger has maintained its projection of an adjusted EBIT margin of around 5% of Group revenue for the current financial year. The Group expects ROCE for 2024 to be significantly below the previous year's level of 5.6%. The Group had previously forecast a figure of around 6% for 2024. The Group now anticipates revenue to be at a level slightly below the previous year's figure in organic terms (previously: slight organic growth) and expects operating free cash flow to be slightly positive (previously: around 2% of Group revenue).

For further information, please contact:
ElringKlinger AG   |   Strategic Communications
Dr. Jens Winter
Fon: 335   |   E-Mail:

About ElringKlinger AG
As an independent supplier operating worldwide, the ElringKlinger Group has established itself as a powerful and trusted partner to the automotive industry – acknowledged for its exceptional depth of expertise. Our product portfolio encompasses innovative solutions for passenger cars and commercial vehicles powered by electric motors, hybrid technology, or combustion engines. Alongside the powertrain, other areas of application include the underbody, chassis, braking system, interior, and vehicle body. We were among the frontrunners when it came to positioning ourselves as a specialist in the field of e-mobility – with pioneering battery and fuel cell technology, and associated components and assemblies, such as plastic housings, and punched and formed metal parts.

Customized lightweight components engineered by ElringKlinger can be used throughout the entire vehicle; they deliver tangible benefits in terms of weight reduction, efficiency, and functional integration, especially in e-mobility applications. We offer specifically adapted sealing systems, thermal, and acoustic shielding parts, and dynamic drive components for a wide range of applications and for any type of drive technology. Additionally, we serve the aftermarket in more than 140 countries with an extensive range of spare parts.

This is complemented by state-of-the-art tooling technology and products made from high-performance plastics – tailored to the requirements of the automotive industry and other sectors. Building on our excellence in the field of components and systems, we are also maintaining our forward momentum in the non-automotive sector. These efforts are supported by a dedicated workforce of around 9,600 people employed within the ElringKlinger Group. Operating at more than 40 sites worldwide, ElringKlinger has established a global presence and is closely aligned with its customers in all major automotive regions.

Legal notice
This release contains forward-looking statements. These statements are based on the expectations, market assessments, and forecasts of the Management Board and the information currently available to it. These forward-looking statements shall, in particular, not be construed as guarantees of future developments and results referred to therein. Although the Management Board is of the firm opinion that the statements made and their underlying beliefs and expectations are realistic, they are based on assumptions that may prove to be incorrect. Future results and developments depend on a variety of factors, risks, and uncertainties that may lead to changes in the expectations and judgments that have been expressed. These factors include, for example, changes in general economic and business conditions, fluctuations in exchange rates and interest rates, lack of acceptance of new products and services, and changes in business strategy.