Management Buyout at Sachs Motorcycles

NEURENBERG, Germany (14 February) - The management team of the German producer and distributor of motorcycles and scooters, Sachs Fahrzeug-und Motorentechnik GmbH has taken over the company from the Dutch holding Winning Wheels. The management buyout (MBO) took place on Monday 12 February for an undisclosed sum. The three managers of Sachs with Dr. Oliver Schnorr as President, as well as Hartmut Huhn and Karl-Heinz Summerer, are now in control of the company. MD Oliver Schnorr stated after the MBO, "We are now free to negotiate with future partners and investors. At the moment we are still negotiating with several investors. A decision has not been made so far, which means that the door is still open for potential candidates." According to the new owners the successful restructuring of the company will continue with the goal of becoming a stronger motorcycle producer. Already last year Sachs Fahrzeug-und Motorentechnik GmbH introduced two big volume motorbikes, 650cc and 800cc, which became a positive response from the market. Sachs is producing about 20,000 motorcycles per year. This number includes the small Saxonette which is a bicycle fitted with a small 30cc engine. Next to producer Sachs is also a distributor. The Neurenberg based company distributes the Italian Malaguti scooters in Germany. In September 1998 Mannesmann Sachs AG sold Sachs Fahrzeug-und Motorentechnik GmbH to the Dutch Winning Wheels Holding Company. At that time the German motorcycle producer realized a yearly turnover of about DEM 100 million (US$47.1mn;EUR51.1mn). (JO)