Masterflex Wants to Sell Activities in Electric Mobility
On 10 November the Executive Board of the German public company Masterflex AG announced its decision to sell its (electric) Mobility Group, the last remaining non-core business activity of the Masterflex Group. The sale of
GELSENKIRCHEN, Germany – On 10 November the Executive Board of the German public company Masterflex AG announced its decision to sell its (electric) Mobility Group, the last remaining non-core business activity of the Masterflex Group.
The sale of the (electric) Mobility Group will complete the restructuring of the Group initiated in 2008 as part of the Group’s long-term strategy to focus its activities on the core business High-Tech Hose Systems. The Group is now actively seeking a buyer for the Electric Mobility group(as a whole or parts of it) and is already holding initial discussions for this purpose.
The company’s mobility activities – since 2008 under the Masterflex Mobility GmbH roof – are focusing on fuel cell technology equipped cargo bike and velo taxis, e-Bikes and electric drivetrains. In the field of fuel cell technology bikes and e-Bikes Masterflex is the joint venture partner of Berlin-based Clean Air Bike GmbH. GM of Clean Air Bike is Lorenz Hoser, GM of joint-venture partner Hawk Bikes E&M GmbH (brands Hawk, Hawk Classic and Nox Cycles). In drivetrain systems Masterflex is the joint venture partner of Herten-based Velodrive GmbH, a system supplier for electric motorcycles and bicycles as well as drivetrains for scooters for handicapped people.
According to a press release the Executive Board of Masterflex AG will now “press ahead quickly with the sale process and will actively examine separate sales of individual Mobility equity investments and/or cooperations with partners as well as a complete sale of the Group”.
The reason for the sale is rooted in the high growth and diversification strategy of the years following the IPO that led to a high level of debt and considerable distortions of the balance sheet. In the 2008 financial year, the absolutely essential restructuring measures to refocus Masterflex AG’s activities on the core business High-Tech Hose Systems started, as the debt burden in particular had by then grown to an overwhelming extent, even threatening the company’s survival.