Nice Holdings Co. Becomes New Majority ShareholderJune 2, 2015
NICE's first overseas transaction is the next consequent step to further grow the group's manufacturing activities and strengthen its metallurgic expertise. Tyrol Equity retains a minority stake and will support NICE to further implement BBS’ growth strategy.
Schiltach (Germany), Innsbruck (Austria), 2nd June 2015 – An investor consortium led by Tyrol Equity AG, an Austria-based industrial holding ("Tyrol Equity") has signed an agreement to sell a majority stake in BBS GmbH, a German manufacturer of high- performance alloy wheels, to NICE Holdings (“NICE”), a Korean industrial group listed on the Korean stock exchange. Tyrol Equity will stay invested and support its new partner NICE to realize BBS’ strategic growth path. The transaction is subject to relevant regulatory approvals and is expected to be completed within the next months. The parties have agreed not to disclose the transaction value.
BBS is a leading manufacturer of cast high-performance light alloy wheels for premium automotive original equipment manufacturers (OEM), high-end tuning companies as well as the independent aftermarket (IAM). Since its foundation back in the 1970s, BBS covers the entire value-added chain from melting to casting, flow-forming, machining and surface finishing. BBS’ products are 100% designed, manufactured and tested in Germany. In 2014, BBS generated sales of ca. EUR 70 million and maintained a workforce of approx. 430 employees.
"Since our entry in early 2012 we have worked intensively and successfully in reorganizing BBS' operations and the implementation of a sustainable growth strategy. We would like to thank the management team and all the employees for their trust and great support. We are proud of what we have achieved and are convinced that NICE is the right partner to support the next major step for BBS, particularly in terms of strategy." commented Dietmar Gstrein, Member of the Board of Tyrol Equity AG.
"Working with the BBS management over the last 3 years, Tyrol Equity has demonstrated great dedication and detailed business expertise in restructuring the business. For the company and for us personally as Managing Directors this was a fruitful period. We now look forward to working together with NICE as a new strong partner." stated Jürgen Lohmann, CEO of BBS GmbH.
"We are very happy to be the new partner of BBS. We are convinced to build a great business success with BBS and are confident that BBS provides NICE with a feasible chance to accomplish unprecedented business success in European markets. Additionally, we will make the best use of the stable financial structure of NICE Group and its strong network in Asia. We will provide the utmost support to BBS for continuous and sustainable growth through market penetration in Asian markets." says Jin Dong-Hyun, General Director of NICE Holdings. Tyrol Equity was advised on the transaction by the international investment bank N+1 (M&A) and Orth Kluth (legal).
About Tyrol Equity:
Tyrol Equity is a leading Austrian industrial holding. Its initiators and shareholders are successful entrepreneurs and entrepreneurial families as well as a leading financial institution. Tyrol Equity invests in medium-sized production companies with a turnover of up to EUR 150 million and particularly focuses on the industrial and automotive sector in Austria and Germany.
NICE Group is a listed financial infrastructure service provider and manufacturing company based in Korea and consists of three business divisions including financial information business, financial infrastructure business and manufacturing business. In its manufacturing business division, a light-metal business has been selected and fostered as the core business item since the year 2010. In this context, NICE Group has continuously sought for optimal market opportunities where strong customer needs for light-metal materials in manufacturing various parts of automobiles, aircrafts and others with a purpose of utilizing energy efficiency while coping with related regulations.
BBS is the world's most well-known brand for light alloy wheels. This is confirmed by awards from leading German and international automotive trade magazines. Careful controls guarantee the quality of products made by BBS, beginning with the heat treatment up to the surface finish. Each wheel produced is artificially aged. This is crucial for the strength of the aluminum. BBS only uses environmentally friendly coatings. The coating method guarantees the OE quality of leading premium car manufacturers.