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MIFA buys Birias Juiciest Piece

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NEUKIRCH/SANGERHAUSEN, Germany (6 December) Lone Star Funds, the US investment company that owns Biria Bike GmbH, sold piece of the cake to Mifa (Mitteldeutsche Fahrradwerke AG). Shortly before the deal was closed, Lone Star communicated that Biria’s factory in Neukirch will be closed.

MIFA buys Birias Juiciest Piece

NEUKIRCH/SANGERHAUSEN, Germany – (6 December) Lone Star Funds, the US investment company that owns Biria Bike GmbH, sold piece of the cake to Mifa (Mitteldeutsche Fahrradwerke AG). Shortly before the deal was closed, Lone Star communicated that Biria’s factory in Neukirch will be closed.

For this deal, Lone Star founded an intermediate company, gatus333 GmbH, based in Berlin. Gatus333 GmbH consisted exclusively of the parts of Biria to be sold to Mifa. On 6 December, Mifa acquired 100% ownership of gatus333 GmbH. Of course, this sale is under an annullating condition depending on the approval of the competition authorities.

The press release mentions ‘inventory, warehouse stock and some customer contracts.’ Industry insiders claim that contracts for mail delivery bicycles (which Biria supplied to Deutschepost, Denmark, Austria and Russia are included in the deal, and that these orders have been the mainstay of the Biria business for the past couple of years. Mifa’s price for gatus333. GmbH was € 8 million. Mifa plans to pay in shares, for which it will increase its stock with an emission of new shares for a nominal price of € 4 per share. As said, Lone Star decided to close on of the two German Biria factories.

The factory in Neukirch being for ‘special productions’ (read: postman’s bicycles) will be closed as that part goes to Mifa. All remaining Biria production will go to (or stay at) Biria’s factory in Nordhausen.(JB)

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