KAP AG Streamlines Investment Portfolio and Sells Precision Components Segment

KAP AG has announced the sale of its precision components segment as part of a strategy to optimize its portfolio. This move aims to enhance strategic focus through further portfolio optimization.

The transaction, expected to be completed by the end of October 2024, involves the sale of Präzisionsteile Dresden GmbH & Co. KG, Gear Motion GmbH, and BEBUSCH Hungaria Müanyagfeldolgozó Kft., along with three associated companies. The current management, led by Christoph Bachmann and Udo Gaumann, is acquiring these assets through a management buy-out (MBO).

This sale will generate proceeds in the single-digit million euro range for KAP AG, with the buyer also assuming pension and financial obligations. Despite book losses in the double-digit million euro range, this will not impact the company's 2024 guidance forecast.

KAP AG's strategic decision aligns with its goal to focus on segments with potential for value growth, enhancing strategic fit within the group over the medium term. The precision components segment produces complex parts used in e-bike applications and automotive systems.