Tesla has agreed to acquire parts of the insolvent German high-tech parts maker Manz, which has recently entered insolvency proceedings due to a liquidity squeeze.
The Local Court of Stuttgart officially opened insolvency proceedings concerning Manz’s assets.
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Attorney Martin Mucha from the law firm Grub Brugger has been appointed as the insolvency administrator.
A purchase agreement has been signed between Tesla Automation, a subsidiary of Tesla based in Prüm, and Manz’s insolvency administrator.
The latest transaction forms part of Tesla’s efforts to expand its presence in Germany, where it already operates a manufacturing facility near Berlin.
As part of deal, Tesla will acquire Manz’s more than 300 employees at its site in Reutlingen city in the southwest.
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By GlobalDataThe agreement includes the takeover of movable tangible assets and the use of Manz’s company property in Reutlingen.
Tesla Automation managing director Lothar Thommes said: “We are gaining qualified employees with a high level of expertise in high-tech mechanical engineering.
“The Reutlingen site is an ideal complement to the continued successful implementation of our global automation projects in the Tesla Group. We are very pleased to be realising future innovations there.”
The transaction’s completion is pending the German Federal Cartel Office’s approval.
Mucha said: “The structured sales process for the further assets is being driven forward with the highest priority – in a very challenging market environment. We are currently holding promising talks with several interested parties.”
Last month, Manz announced the extension of its sales process to all business units, aiming to sell economically independent subsidiaries and other holdings that continue to operate in the market.
Manz said that the assets must be realised within the insolvency proceedings as its business operations cannot be maintained.
Around 100 Manz employees not transitioning to Tesla Automation will be offered positions in a transfer company to mitigate the social impact of job losses.
The proceeds from the sale will only partially satisfy the non-subordinated insolvency creditors, and no payments to the subordinated insolvency creditors, including Manz shareholders, are anticipated.
