Streamlining Operations: Dürr Offloads Majority of Environmental Tech Division to Stellex Capital
Durr offloads largest share in their environmental technology division - Dürr offloads its principal stakes in the environmental technology sector
Get ready for some major changes at Dürr, the machine-building and automotive supplier giant! The company, based in Bietigheim-Bissingen, is shaking things up by selling three-quarters of its Environmental Technology division to the financial juggernaut Stellex, with the deal valued at around 250 million euros. fingers-crossed-emoji Despite this massive sale, Dürr will still hold onto a 25% stake in the division, keeping a finger in the environmental pie.
So, what's the deal with this division? Well, it specializes in creating plants to eliminate harmful substances found in industrial exhaust, vitally important for a variety of industries like chemical, pharmaceutical, and automotive. The division raked in sales of 407 million euros in 2024.
The sale, subject to the usual approvals, is expected to close in the fourth quarter of 2025. Dürr, listed on the SDAX, is planning to use the funds from the sale to give its existing debt a good ol' fashioned boot to the curb. As a result, the company has revised its year-end debt forecast to be between 250 to 300 million euros.
With this divestment, Dürr is getting ready to slim down its administrative department. According to the announcement, the goal is to tailor the administrative area to the new company size while making it more efficient.
Now, let's talk numbers: the transaction is expected to bring in about 250 million euros in net proceeds, which will be plowed directly back into debt reduction, giving the Group's financial position a welcome boost.
This sale marks the culmination of Dürr's ongoing restructuring efforts, signaling a strategic shift towards the automation of production processes as opposed to environmental technology. Although a significant portion of this division is being sold, Dürr remains invested in the environmental sector, just with a more streamlined operation.
As a result of this divestment, Dürr anticipates a dip in Group sales by around 10%, with the revised forecast for net financial debt at year-end landing between 250 and 300 million euros. In terms of its future administrative structure, Dürr plans to streamline its operations by shrinking and optimizing its administrative branch to match the new, smaller size of the company.
In summary:
- Proceeds from sale: Approx. 250 million euros net
- Use of proceeds: Debt reduction, strengthening Group financial health
- Strategic focus: Automation of production processes
- Retained stake: ~25% re-investment in environmental technology
- Impact on sales: ~10% reduction due to divestment
- Administrative implications: Downsizing and efficiency improvements in administration
In essence, this move not only helps Dürr slash its debt but also simplifies its corporate structure, allowing the company to focus more intensely on its core production automation business with a leaner administrative setup.
- The environmental technology division of Dürr, which primarily focuses on creating plants to eliminate harmful industrial exhaust, has been a significant contributor to the company's sales, generating sales of 407 million euros in 2024.
- The sale of this division to Stellex Capital, while reducing Dürr's involvement in the division, will still enable the company to continue its investment in environmental technology with its retained 25% stake, showcasing a commitment to the broader environmental science sector.
