"With this step, we are once again demonstrating that we are consistently continuing to implement our announced and now advanced focus on the wiring systems segment," explains Aldo Kamper, Chairman of Leoni's Board of Directors. The company wants to concentrate strategically on consolidating its leading position as a supplier of wiring systems for the automotive industry. Against this backdrop, Leoni had already divested two units of the WCS division (Leoni Switzerland and the Data Communication and Compound units of Leoni Kerpen) in recent months.

BizLink is an international provider of solutions for cable connections and connectivity services. The acquisition of Leoni Industrial Solutions by BizLink is intended to expand the company's market presence, particularly in Europe. The sale comprises around 20 international locations of Leoni's Industrial Solutions business group in ten countries with around 3,000 employees. The activities of these locations include the healthcare, robotics and automation sectors.

The activities sold generated a sales volume of around EUR 430 million in the 2020 financial year and are valued at an enterprise value of around EUR 450 million. The expected cash inflow after deduction of financial liabilities and pension obligations, among other things, is over EUR 300 million and is to be used to strengthen liquidity. The transaction should help to significantly improve Leoni's financial stability. Upon completion of the sale, a gain of around EUR 200 million is expected, which will be recognized in the Group's reported EBIT.

Completion of the sale is subject to the approval of Leoni's financing banks and is subject to customary closing conditions, including merger control and investment review, and is expected in early 2022.