Chinese Company to Acquire SaarGummi

The sales process involving the insolvent German automotive supplier SaarGummi GmbH has reached an important milestone, according to reports by the two appointed insolvency administrators. With effect 28 April 2011, the participating banks approved the purchase agreement concluded between the insolvency administrators and the Chinese firm Chongqing Light Industry & Textile Holding Group Co. Ltd (CQLT). As a consequence, CQLT provided the stipulated security and made a substantial payment as an initial purchase price instalment.

Now that the essential underlying conditions have been met so as to permit the sale of SaarGummi to CQLT, the two insolvency administrators will discontinue sales discussions with other potential investors. The sale covers both SaarGummi Deutschland GmbH and the entire SaarGummi Group. In addition, as a result of the transaction, most of the jobs at the locations in Germany will be preserved, and the Group will be kept intact.

The SaarGummi Group is one of the world’s leading manufacturers of automotive sealing systems. The rubber-processing company is development partner and supplier for the automotive industry in Europe, North and South America, and Asia. The Group maintains production facilities in Germany, the Czech Republic, Slovakia, Spain, India, Brazil, China, and the US. In 2010 SaarGummi employed around 4,400 staff worldwide at 23 companies with 12 production sites and generated revenues of roughly €360 million, of which €320 million is attributable to the automotive sector.