The holding company of Datwyler Cabling Solutions is selling the business to its majority shareholder in a move that is meant to shed the parent’s lower-growth and/or lower-margin operations. Datwyler Holding Inc. will sell Datwyler Cabling Solutions to Pema Holding AG for 95 million Swiss francs (CHF) in a deal that is not subject to any conditions and will close on December 31.
Datwyler Group chief executive officer Paul Halg commented, “Datwyler is consolidating forces and focusing its growth strategy on attractive markets.” In a statement announcing the cabling-business sale and other corporate moves, Datwyler Holding said of the Cabling Solutions Division, “In 2011, the division generated net revenue of CHF 240.9 million and operating profit of 4.6 million. From today’s point of view, Cabling Solutions has only limited potential to further increase value within the Datwyler Group.”
The company further explained its vision for the sale: “Being a private owner, Pema is better placed to successfully develop and expand the Cabling Solutions operations. Pema Holdings AG will take over all facilities and the entire workforce of the Cabling Solutions Division. The operating management and Datwyler trade name will also remain unchanged and ensure continuity.”
During a transition phase, Halg and Datwyler Group chief financial officer Reto Welte will serve as directors of Datwyler Cabling Solutions AG. The division’s CEO Johannes Muller will continue in that executive capacity, but will leave the executive management of Datwyler Holding Inc., which is publicly listed, at the end of 2012.