German industrial automation provider Eisenmann SE has filed for insolvency and launched a strategic reorientation plan to help the company return to profitability in a plan that could see some business units sold off, corporate leaders said Monday.
Böblingen, Germany-based Eisenmann this week filed its petition for the opening of insolvency at Stuttgart District Court, also submitting applications for the related business units Eisenmann Anlagenbau GmbH & Co. KG, Eisenmann Lactec GmbH, and ENisco GmbH & Co. KG.
The owner and management of the Eisenmann Group first initiated the restructuring and strategic reorientation of the company in March, saying the acquisition and completion of various major projects in 2018 had led to a large year-on-year loss.
The court quickly accepted the petition, and on Wednesday appointed lawyer Joachim Exner as preliminary insolvency administrator. Exner will now analyze the situation and will hold talks with the parties involved "at very short notice," in order to examine the restructuring options for the group of companies in whole or in part, Eisenmann said.
As part of the structuring, the company will seek "strategic partners" to buy portions of certain business divisions. "We had to act fast and consistently here. At the same time, we also wanted to create the strategic and structural foundations for our long-term competitiveness," Michael Keppel, the chief restructuring officer who was hired by Eisenmann in April, said in a release.
"We are convinced that we can shoulder the growing risks and capital requirements in our systems business together with an industrial partner and exploit our full potential more quickly. That's why we're looking for a strategic partner for our Paint & Assembly (PA) and Application Technology (AT) businesses. First interested parties have already registered," Keppel said.
Family-run Eisenmann provides industrial solutions for surface finishing, material flow automation, thermal process technology, and environmental engineering. The company has a workforce of approximately 3,000 employees worldwide, with 27 locations in 15 countries in Europe, the Americas, and the BRIC countries (Brazil, Russia, India, and China). In 2017, Eisenmann generated annual revenues of $802 million.
"We are focusing on our core business and intend to push forward the restructuring and strategic realignment of the Eisenmann Group as part of the insolvency in order to return to a profitable business as soon as possible," Keppel said. "We want to use this opportunity for a fresh start consistently and can build on a fundamentally sound business model. Market position, reputation, innovative strength, and motivated and well-trained employees are essential components for the long-term perspective of our company."