Successful advisory for Rhodius' automotive division during its acquisition by ZF Airbag Tube Forming GmbH

Transaction

In July 2023, Rhodius GmbH and other companies belonging to the Rhodius Group filed for insolvency at the Ansbach Local Court. Together with the insolvency administrator, attorney Joachim Exner from the law firm Dr. Beck & Partner, and his team, they succeeded in stabilizing business operations and finding an investor for the Rhodius Automotive division for one of the three German locations in Rostock. The parties have agreed not to disclose the details of the transaction.

The acquisition of ZF Airbag Tube Forming GmbH, which specializes in gas generators for airbags and belongs to ZF LIFETEC, was entirely in line with ZF LIFETEC's strategy of vertical integration to combine various production stages under one roof, integrate know-how, and exploit synergies. This business strategy enables the company to expand its own value creation potential, further increase competitiveness, and eliminate risks in the supply chain as far as possible. The Laager Rhodius site, which is located almost directly adjacent to the ZF production facility, specializes in the production of pressure vessels for gas generators used to deploy airbags and will be seamlessly integrated into the ZF production chain.

About Rhodius Automotive

Rhodius is a leading supplier of filtration products and modules in the areas of knitted fabrics & separation, industrial technology, and safety systems.
At its plant in Laage-Kronskamp, Rhodius Automotive manufactures components for passive safety systems for the automotive sector, primarily for airbags and seat belts. As part of the transaction, ZF LIFETEC acquired the land, buildings, and facilities. Since the transaction was completed, the company, which was founded in 1925, has been part of ZF LIFETEC.

About ZF Airbag Tube Forming and ZF LIFETEC

ZF LIFETEC is a leading supplier of passive safety technology for the automotive industry. The company employs around 36,000 people who are committed to saving lives with advanced occupant protection systems. ZF LIFETEC develops and manufactures a comprehensive product portfolio of airbag, seat belt, and steering wheel systems, covering a wide range of vehicles from small cars in the volume segment to sophisticated luxury vehicles.

With a market share of over 20 percent in its main product categories, ZF LIFETEC is represented worldwide at 48 locations in 20 countries. In fiscal year 2023, the group generated sales of 4.6 billion euros. Based on its strong relationships with a broadly diversified customer base of global OEMs, long-standing R&D collaborations, a powerful global innovation platform, and outstanding quality, ZF LIFETEC sees itself as well positioned for future growth opportunities resulting from automotive megatrends such as (semi-)automated driving, increasing safety requirements, and stricter safety regulations worldwide.