MUNICH -- Edscha AG's convertible roof systems business will be taken over by rival German supplier Webasto AG in a deal that will secure 1,200 European jobs, Edscha said on Tuesday.
Talks to find a buyer for Edshca's larger body components business are "proceeding according to plan," said Joerg Nerlich, Edscha's insolvency administrator said in a statement Tuesday. "I am optimistic about achieving agreement with a potential partner by late summer."
Edscha's board initiated insolvency proceedings for the company's European operations on February 2 after the company was hit by falling sales and the global credit squeeze.
Edscha is the world's largest supplier of hinge systems and a leading supplier of convertible roof systems with sales of 1 billion euros in its 2007-2008 business year. The convertible roof systems unit generates about a third of Edscha's sales.
Edscha was bought by the Carlyle Group, a U.S. private equity firm, at the end of 2002.
BMW, Audi and Daimler's Mercedes-Benz and Smart are key customers
Webasto, based in Stockdorf, near Munich, had sales of 1.6 billion euros last year.
Its core competencies include the development and production of complete convertible, roof and body systems as well as heating, cooling and ventilation systems for cars and commercial vehicles.