"With this decision, we strengthen our balance sheet, support the ongoing talks regarding our refinancing and drive forward our well-known strategic focusing on the wiring systems business," Leoni CEO Aldo Kamper, said in a statement.
The cables business unit has a global production network with ten locations in seven countries and around 3,300 employees, specializing in automotive standard, special and charging cables.
The cable business unit’s sale activities generated a sales volume of approximately 1.3 billion euros ($1.39 billion) in the 2021 fiscal year, with an estimated enterprise value of 560 million euros ($600 million).
Leoni said finalization of the sale would be subject to various closing conditions, including required merger control and investment control clearances, expected to be granted within six months.
The closing of the transaction is also subject to the approval of Leoni’s ‘s financing partners.
Leoni has been hit hard by the war in Ukraine. In the first quarter, sales had slipped 6.9 percent year-on-year to 1.26 billion euros ($1.35 billion).