German engineering company Magnet-Schultz announces takeover in Romania

German manufacturer of electromechanical and electro-hydraulic devices Magnet-Schultz enters the Romanian market by taking over a subsidiary of the local peer Electroprecizia, according to Economica.net.

"The costs in Germany and Switzerland remain high, particularly for activities that cannot be automated. Like many other companies, we are increasing activities in the so-called best-cost countries," said Albert Schultz, CEO of Magnet-Schultz, at the presentation of the financial results earlier this year.

Bucharest Exchange-listed Electroprecizia (BVB: ELZY) announced the signing of an agreement for the sale of all shares held in the company Electroprecizia Electrical Equipment.

The sale of the 99% stake, subject to prior conditions, is estimated to be completed by the end of 2024. The remaining shares, 1%, are owned by a local entrepreneur.

Magnet-Scultz was founded in 1912 and is a fourth-generation family business. The company has two production plants in Germany, in Memmingen and Memmingerberg.

The company had a turnover of EUR 423 million in the financial year that ended on June 30, 2024, down 5% from the previous financial year.

With subsidiaries in Germany, the USA, Switzerland, China, and the UK, the company has around 2,450 employees, of which 1,900 in Germany.

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