Toyoda Gosei: Sale of German production subsidiary to business fund

Toyoda Gosei Co., Ltd. announced that it will transfer its entire ownership stake in Toyoda Gosei Meteor GmbH (TGM), its production subsidiary in Bockenem, Germany, to SCUR-Alpha 1123 GmbH (now: AEQPH GmbH), an affiliate of a German business fund.

According to Toyoda Gosei, the company has been reforming its earnings structure in each global region as an integral part of its efforts to achieve sustainable growth. However, its European business has continued to struggle. After considering remediation measures, it has decided to sell all of its shares in TGM.

At the completion of this transaction, TGM and its subsidiary Meteor Sealing Systems, LLC in Dover, OH, USA, will no longer be consolidated subsidiaries of Toyoda Gosei. TGM has 1,359 employees and Meteor Sealing Systems employs 315 people (as of 31 March 2019). Both companies produce weatherstrips for the automotive industry.

The procedures for this transfer of ownership shares and management rights are expected to be completed by the end of December 2019. The estimated loss to be incurred from the transfer is JPY 21 billion, which Toyoda Gosei will report as a loss on liquidation of business in its financial results for the fiscal year ending 31 March 2020.

www.meteor-sealingsystems.com
www.tg-meteor.com
www.toyoda-gosei.com