Paragon is aiming to sell its stake in Voltabox
Automotive supplier Paragon plans to sell its 60 per cent stake in Voltabox, a subsidiary specialising in lithium-ion battery systems. According to the German supplier based in Delbrück, several options are currently being examined.
According to its own statements, Paragon holds 60 per cent of Voltabox, the remaining 40 per cent are free-floating. In its press release on the matter, Paragon says that there are increasingly fewer overlaps between the two businesses. The options currently being examined range from a partial sale to a sale of the entire holding.
Paragon has accompanied Voltabox for more than eight years to its market-leading position, says Paragon CEO Klaus Dieter Frers. “However, as an automotive company with a strong base in continental Europe, we are not the right long-term partner to scale the business globally and thus exploit its full growth potential,” says the manager, who is also Chairman of the Supervisory Board of Voltabox AG.
In view of this lack of significant overlaps and dependencies, Paragon intends to focus on sensor technology, digital assistance systems and body kinematics in car manufacturing, while Voltabox’s lithium-ion systems are mainly used in industrial applications. Paragon’s management is convinced that “Voltabox AG can best leverage its considerable market potential as market leader for lithium-ion battery systems in industrial applications with well-capitalized owners that have a strong international footprint” Voltabox could thus exploit its “significant growth opportunities in attractive mass markets” for intralogistics and electric buses.
Paragon writes in their press release that they have mandated Oddo Seydler Bank for “possible partial sales”. Paragon intends to invest the proceeds in its core automotive business.
Voltabox has not made any comments in the Paragon press release and the company itself has not yet published a statement on Paragon’s plans. Voltabox has recently been in deficit due to a number of postponed major orders but is aiming for a profit in 2020. Sales had been rising steadily over the past few quarters.
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