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MBB Gelma Continues Kynast with 400 Employees

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QUAKENBRUCK, Germany (18 August 2000) — Last Wednesday German bike maker Kynast officially announced that it has been taken over by MBB Gelma. Based in Berlin, MBB Gelma, a holding company with interest in, among others, the software and electronic sectors, will be responsible for Kynast’s 400 employees and entire operation from 1 October on. […]

QUAKENBRUCK, Germany (18 August 2000) — Last Wednesday German bike maker Kynast officially announced that it has been taken over by MBB Gelma. Based in Berlin, MBB Gelma, a holding company with interest in, among others, the software and electronic sectors, will be responsible for Kynast’s 400 employees and entire operation from 1 October on. In its first year MBB Gelma targets Kynast’s turnover at DEM127 million, achieved through the production of bikes for both the Kynast brand and private labels. In addition, Kynast will continue to produce lawnmowers, while its current activities in steel tubing will be expanded. The purchase of the ‘old’ Kynast AG’s activities and the setting up of the ‘new’ Kynast GmbH fits into MBB Gelma’s company philosophy, according to Dr. Christof Nesemeier who, together with Gert-Maria Freimuth, head the German holding. The company philosophy is based on two pillars: acquiring, restructuring and making financially healthy struggling companies and acquiring new companies that have the potential to go public. “As a struggling company, Kynast fits perfectly into the holding’s strategic trajectory. I am convinced that with our support of the management and the financial injection we’ll provide we will make Kynast a healthy company again.” Clemens Ortgies and Jochen Petsch, directors of the former Kynast AG, will be members of the new management team of Kynast GmbH, which will be headed by Mr. Freimuth of MBB Gelma. The management team will be completed in the near future by a new sales director. Nesemeier says that MBB Gelma has no plans to make Kynast a healthy company again and then quickly sell it off. “We have no history of selling recently acquired companies. With Kynast we are taking a step into the leisure sector and we plan to stay there.” In 1997 Nesemeier and Freimuth acquired MBB Gelma from Daimler Benz Aerospace AG. MBB Gelma and its subsidiaries currently have an annual turnover of DEM230 million and employ some 700 people. On 1 August the Dorma Group also purchased an interest in MBB Gelma by taking over a 51% majority share in MBB Gelma GbmH in Bonn, one of MBB Gelma’s subsidiaries. (JO)

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