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Leading German press makers to merge
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28/03/2007
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Schuler AG is to take over Müller Weingarten AG and merge the two firms.
In the first step towards the merger, Schuler acquired 64.49 per cent of the share capital of Müller Weingarten AG from Metzler Beteiligungsgesellschaft mbH in Frankfurt. The acquisition is expected to complete by the end of the year.
The new company will operate under the name Schuler Weingarten AG and be headquartered in Göppingen. It will be the world leader in the field of forming technology for the metalworking industry, with a global market share of around 35 per cent, says the news release.
Schuler Weingarten AG will be represented in more than 20 countries, generate turnover in excess of €900 million, and have global market coverage in terms of distribution, production and service.
The merger will allow Schuler Weingarten AG to exploit new growth opportunities with drivers of this growth being innovative products resulting from enhanced engineering potential, a stronger presence in the growth markets – in particular Asia and Eastern Europe – and the expansion of the successful services business.
"The ability of our company to adapt to future needs will secure jobs in Germany for years to come. Today we are proceeding on the assumption that we will exceed the billion euro mark in turnover in the next three years and substantially improve our profit situation," said Jürgen Tonn, CEO of Schuler AG.
In the medium term, the merger will bring cost savings of more than €40 million a year, although this will be set against restructuring costs of up to €45 million.
Current estimates suggest that the merger will result in downsizing of 400 to 450 employees altogether over the course of the next three years.
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Author
Andrew Allcock
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