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FAQ: Schweizer Electronic AG's Capital Structure Strengthening and Strategic Transformation
TL;DR
SCHWEIZER's strategic sale of 15% SEC shares and patents provides €21 million to strengthen competitiveness and access growth segments like aviation and defense.
SCHWEIZER is selling 15% of its SEC shares and Chinese patents to WUS Printed Circuit, generating €21 million to improve capital structure and liquidity.
SCHWEIZER's investments will strengthen European supply chain security and provide reliable, traceable manufacturing for critical infrastructure and sensitive applications.
Founded in 1849, SCHWEIZER maintains cutting-edge PCB production in Germany while pursuing a fab-light strategy with global manufacturing partnerships.
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The company is strengthening its capital structure by selling 15% of its shares in Schweizer Electronic (Jiangsu) Co., Ltd. and several Chinese patents to generate approximately €21 million in cash inflow, which will fund strategic investments in new growth segments and improve the company's financial position.
The transactions will result in a total cash inflow of around EUR 21 million, which will improve both the capital structure and liquidity of the SCHWEIZER Group in the long term.
Subject to the usual closing conditions, the transaction is expected to be completed before the end of 2025.
The funds will be used to implement the transformation of the strategic orientation of the business model and the Schramberg location, focusing on scaling non-automotive markets while maintaining automotive electronics, and strengthening local value creation and supply chain security.
SCHWEIZER remains committed to Schramberg as a production location and will use the funds to strengthen it technologically while pursuing stronger local value creation, greater supply chain security, and reliable supply to European and North American markets.
The company is targeting new growth segments such as aviation and defense, leveraging current industrial policy initiatives in the security and defense sector to consolidate its position in these attractive growth areas.
Despite the change in ownership structure, Schweizer Electronic (Jiangsu) Co., Ltd. will remain an essential part of SCHWEIZER's fab-light concept, continuing to offer customers products from Asia alongside German manufacturing capacities.
Management now expects the Group to have an equity ratio of 20 to 25% (previously 9 to 12%) and a net gearing ratio of -20 to +20% (previously 100 to 125%), significantly strengthening the balance sheet.
CEO Nicolas-Fabian Schweizer stated the investments will strengthen Schramberg technologically and increase supply chain robustness, while CFO Marc Bunz noted the sale will significantly improve the Group's liquidity and equity while maintaining focus on efficiency programs.
The company expects increased competitiveness, access to new growth segments, improved supply chain reliability, stronger local value creation, and the ability to provide traceable, trustworthy manufacturing for sensitive applications and critical infrastructures in Europe.
Curated from NewMediaWire
