23.12.2024
International
Doerrenberg Edelstahl GmbH has sold both its foundry and steelworks divisions to Callista Private Equity GmbH. This was announced by the parent company Gesco on December 18. The corresponding contract has already been signed and the takeover will take effect on January 1, 2025.
As a result of the sale, Doerrenberg now intends to focus on its core business - trading in tool steel. The areas of surface technology (Coating & Hardening) and design solutions for complex cast components (Casting Products) are not affected by the transaction and will remain part of the Doerrenberg Group.
In the current financial year, Doerrenberg expects sales of EUR 19 million for the foundry and steelworks, compared to EUR 28 million in the previous year. According to the parent company, this development is due to the challenging economic market environment and increasing price pressure from the competition.
Gesco has announced that the sale of the loss-making business units at Doerrenberg will lead to a one-off effect of around EUR 4.5 million on the 2024 annual result. The forecast has therefore been adjusted to between 3.5 and 7.5 million euros. For the future annual operating result (EBIT), however, Gesco expects an increase in the low single-digit million euro range.
About Gesco
Gesco SE is an industrial group with companies in the capital goods industry that specialize in process, resource, healthcare and infrastructure technology. As a Prime Standard-listed company, it offers private and institutional investors access to a portfolio of established niche providers in the German industrial SME sector.
Featured photo: Doerrenberg/Gesco