Veritas: Insolvency administrator selects HDT Automotive Solutions as buyer
The globally active US company HDT Automotive Solutions has agreed to acquire the German automotive and industrial supplier Veritas. The relevant company purchase agreement has been signed by insolvency administrator Dr. Jan Markus Plathner, partner at the nationwide active law firm Brinkmann & Partner, and several acquiring companies of HDT Automotive Solutions. The purchase includes all four German sites in Gelnhausen (Hesse), Polenz and Neustadt (Saxony) as well as Benshausen (Thuringia) and all foreign subsidiaries in Europe, Asia and North America. In Germany, around 1,520 employees will be taken over. According to current plans, around 60 of the 1,166 employees in Gelnhausen will be made redundant. All employees at the six foreign subsidiaries will be taken over. The parties have agreed not to disclose the purchase price.
The purchase agreement contains various provisions which the insolvency administrator and the buyer will work together to fulfill in the coming weeks and months. Among others, several antitrust clearances are necessary. Corresponding applications for clearance of the mergers will be submitted to the relevant authorities shortly. In addition, the purchaser, together with the insolvency administrator, plans to conclude negotiations with the works council in Gelnhausen (Hesse) on a reconciliation of interests before the takeover. The closing, which will take place after fulfillment of the stipulated conditions, is planned for the end of October 2021.
“We have secured a globally active investor for Veritas. HDT Automotive Solutions has extensive experience in the integration of production companies and can now align Veritas with the future opportunities and challenges for automotive production,” said Dr. Jan Markus Plathner. Insolvency administrator Dr. Plathner expressly thanks the workforce, saying: “Insolvency is a profound event that requires a great deal of patience and perseverance. For more than a year, the employees performed every day and contributed to the successful continuation of operations. At the same time, the works council and the representatives of the IGBCE trade union have worked determinately but very constructively together with us on the future of Veritas.”
HDT has extensive experience in manufacturing fluid- and thermal-management systems for diverse automotive uses, as well as a long history of designing and manufacturing cost-effective, high-quality custom solutions.
“We are grateful for the commitment of the Veritas team and look forward to starting our work together. Veritas will play an important role in expanding our global business, particularly with thermal management systems required for the growing hybrid and electric-vehicle market,” said Patrick Paige, CEO of HDT Automotive. “With an expanded global footprint and the addition of key expertise in elastomers and plastics, HDT is poised for growth as we continue to serve our global customers now and into the future.”
Veritas AG and its subsidiaries are development partners to the automotive industry with leading materials and systems expertise for fluid, thermal and seal management in vehicles. For automotive manufacturers, Tier 1 suppliers and industrial customers, the company is represented on three continents with locations in Germany, Sarajevo (Bosnia-Herzegovina), Mieders (Austria), Dunakiliti (Hungary), Kunshan (China), Puebla (Mexico) and Cerkezköy (Turkey). The company’s roots go back to the Berlin Rubber Goods Factory founded in 1849 by William Elliott in Berlin. After several mergers in the late 19th century, the company operated as Veritas Gummiwerke Aktiengesellschaft from 1929 to 1999. Veritas AG is the oldest rubber processing company in Germany.