Latest news with #EuroGroupLaminations
Yahoo
28-07-2025
- Business
- Yahoo
FountainVest to buy major stake in Italy's EuroGroup Laminations
(Reuters) -Asian private equity firm FountainVest has struck a deal with the main shareholder of EuroGroup Laminations to buy a major stake in the Italian electric motor component maker, with a view to eventually taking it private. The two investors said on Monday that EMS Euro Management Services had agreed to sell its 45.7% stake in EuroGroup Laminations to an investment vehicle owned by FountainVest for 3.85 euros per share, a 64% premium to Friday's closing price. EMS would then reinvest 50% of the proceeds from the sale into a new holding company set up with FountainVest to own EuroGroup Laminations. The investors said FountainVest had also struck a deal to buy Tikehau Capital's 7.9% stake in EuroGroup Laminations for the same price, meaning that at the closure of the deal - expected in the first half of 2026 - the new holding would own 55.3% of the voting share capital in EuroGroup Laminations. It will then launch a tender offer for the rest of EuroGroup Laminations shares at 3.85 euros, valuing the company at 626 million euros ($730 million), with a view to delisting it from Euronext Milan. At 1010 GMT, EuroGroup Laminations shares were up almost 54% at 3.58 euros. FountainVest managing director and head of Europe Florian Almeling said the deal would support EuroGroup Laminations' global growth, "while delivering highly differentiated growth opportunities in Asia and other attractive global markets." EuroGroup Laminations specialises in stators and rotors, two core components of electric motors and generators and has eight plants in Italy and seven abroad, including in China and the United States. As part of the deal, EuroGroup Laminations CEO Marco Arduini and other top executives will be confirmed in their roles, the two investors said in a statement. ($1 = 0.8565 euros) Sign in to access your portfolio
Reuters
28-07-2025
- Business
- Reuters
FountainVest to buy major stake in Italy's EuroGroup Laminations
July 28 (Reuters) - Asian private equity firm FountainVest has struck a deal with the main shareholder of EuroGroup Laminations ( opens new tab to buy a major stake in the Italian electric motor component maker, with a view to eventually taking it private. The two investors said on Monday that EMS Euro Management Services had agreed to sell its 45.7% stake in EuroGroup Laminations to an investment vehicle owned by FountainVest for 3.85 euros per share, a 64% premium to Friday's closing price. EMS would then reinvest 50% of the proceeds from the sale into a new holding company set up with FountainVest to own EuroGroup Laminations. The investors said FountainVest had also struck a deal to buy Tikehau Capital's 7.9% stake in EuroGroup Laminations for the same price, meaning that at the closure of the deal - expected in the first half of 2026 - the new holding would own 55.3% of the voting share capital in EuroGroup Laminations. It will then launch a tender offer for the rest of EuroGroup Laminations shares at 3.85 euros, valuing the company at 626 million euros ($730 million), with a view to delisting it from Euronext Milan. At 1010 GMT, EuroGroup Laminations shares were up almost 54% at 3.58 euros. FountainVest managing director and head of Europe Florian Almeling said the deal would support EuroGroup Laminations' global growth, "while delivering highly differentiated growth opportunities in Asia and other attractive global markets." EuroGroup Laminations specialises in stators and rotors, two core components of electric motors and generators and has eight plants in Italy and seven abroad, including in China and the United States. As part of the deal, EuroGroup Laminations CEO Marco Arduini and other top executives will be confirmed in their roles, the two investors said in a statement. ($1 = 0.8565 euros)
Gulf Today
25-04-2025
- Automotive
- Gulf Today
Some European companies wary of expanding in US amid tariff chaos
US President Donald Trump's erratic approach to tariffs is causing some smaller European companies to question the benefits of expanding in the US market - a sign of how tough it has become to navigate trade in the world's top economy. By putting levies on everything from steel and cognac to cars and sandals, Trump aims to prompt foreign firms to move investment to the United States, building new factories and creating thousands of American jobs. While major corporates from the auto and pharma sectors, have rushed to announce expansions or say they are considering them, the stream of announcements, roll-backs and exemptions has left some smaller firms warier of committing. Italy's EuroGroup Laminations currently pays no tariffs on the rotors and stators it supplies to US automotive customers, including Ford and GM, from its plant in Mexico as they comply with existing import rules. But even if it had to, moving production to the US would expose it to tariffs in place on the special type of steel the company uses in its automotive parts, CEO Marco Arduini told Reuters. 'Skipping potential US tariffs ... would not necessarily mean it can compensate for extra costs and low availability of steel,' he said, adding that US labour costs, which are up to six times higher than in Mexico, were also an issue. German fan and motor maker ebm-papst has put on hold plans to build a third US factory or expand one of its existing US sites due to current developments, including the risk that the tariffs will trigger a US recession. 'If there is an economic downturn in the US, demand may develop differently as a result,' CEO Klaus Geissdoerfer said. Small- and medium-sized enterprises (SMEs) are the backbone of many economies, including Italy and Germany, both European Union members and major exporters to the United States. Because they have smaller financial buffers than blue-chip peers, they may react to fresh trade risks more quickly than bigger companies. 'Contrary to Donald Trump's hopes, his protectionism will not lead to more German companies moving to the US and creating jobs there,' said Marc Tenbieg, head of the DMB association that represents Germany's SMEs. DMB in separate comments said a handful of SMEs, which declined to be named due to the sensitivity of the matter, are also currently reviewing their US businesses as a result of Trump's policies. Some member firms of German engineering association VDMA are delaying purchases, Andrew Adair, the group's trade policy advisor for North America, said following a trip to the United States earlier this month. 'Industry appears to be pressing the pause button at the moment,' he said. After weeks of threats, Trump announced on April 2 a series of broad tariffs on goods imported to the United States from most other countries. They included a 20% tariff on EU imports that was later lowered to 10% under what he called a 90-day pause following a rout in US assets. Trump's declarations that other countries have been 'screwing' the US for years - reflecting his ire at US trade deficits, including one of $235.6 billion with the 27-nation EU - have also raised the political and diplomatic temperature. Germany's LAPP, which makes everything from cables and wires to robotics for factories, is nevertheless sticking with plans to double production capacity at its New Jersey site in 2025. 'As a family business, we plan for the long term, not for election periods,' CEO Matthias Lapp said. One major uncertainty is what tariffs will do to demand and inflation within the United States. RBC Capital reckons that 10% of US consumption is based on imports and that it will therefore be 'relatively difficult for consumers to substitute away from imported goods'. But consultancy AlixPartners reckons average US household discretionary spending will fall by more than 10% to $27,000 in a post-tariff world, and recommends that companies adopt a 'pause & monitor' approach. In each of the last three years, the EU on average exported more than 500 billion euros of goods to the US, mostly pharmaceuticals, vehicles and machinery, Eurostat data shows. Trump has taken aim primarily at the bloc's makers of steel, autos and car parts. While the US remains the EU's biggest trading partner, the tariffs have triggered some political pushback against taking on greater exposure, with French President Emmanuel Macron asking European firms to suspend planned investment for now. Industry groups are urging European companies to focus instead on other foreign markets such as India, Latin America and Southeast Asia. 'We have seen that the situation can change quickly overnight,' said Sebastian Zank, head of corporates ratings production at credit ratings agency Scope. 'Everyone will keep their feet still until a picture emerges that can be described as sustainable.' Agencies
Yahoo
25-04-2025
- Business
- Yahoo
Analysis-Some European companies question US expansion amid tariff chaos
By Giulio Piovaccari, Christoph Steitz and Victoria Waldersee MILAN/FRANKFURT/BERLIN (Reuters) -U.S. President Donald Trump's erratic approach to tariffs is causing some smaller European companies to question the benefits of expanding in the U.S. market - a sign of how tough it has become to navigate trade in the world's top economy. By putting levies on everything from steel and cognac to cars and sandals, Trump aims to prompt foreign firms to move investment to the United States, building new factories and creating thousands of American jobs. While major corporates from the auto and pharma sectors, have rushed to announce expansions or say they are considering them, the stream of announcements, roll-backs and exemptions has left some smaller firms warier of committing. Italy's EuroGroup Laminations currently pays no tariffs on the rotors and stators it supplies to U.S. automotive customers, including Ford and GM, from its plant in Mexico as they comply with existing import rules. But even if it had to, moving production to the U.S. would expose it to tariffs in place on the special type of steel the company uses in its automotive parts, CEO Marco Arduini told Reuters. "Skipping potential U.S. tariffs ... would not necessarily mean it can compensate for extra costs and low availability of steel," he said, adding that U.S. labour costs, which are up to six times higher than in Mexico, were also an issue. German fan and motor maker ebm-papst has put on hold plans to build a third U.S. factory or expand one of its existing U.S. sites due to current developments, including the risk that the tariffs will trigger a U.S. recession. "If there is an economic downturn in the U.S., demand may develop differently as a result," CEO Klaus Geissdoerfer said. Small- and medium-sized enterprises (SMEs) are the backbone of many economies, including Italy and Germany, both European Union members and major exporters to the United States. Because they have smaller financial buffers than blue-chip peers, they may react to fresh trade risks more quickly than bigger companies. "Contrary to Donald Trump's hopes, his protectionism will not lead to more German companies moving to the U.S. and creating jobs there," said Marc Tenbieg, head of the DMB association that represents Germany's SMEs. DMB in separate comments said a handful of SMEs, which declined to be named due to the sensitivity of the matter, are also currently reviewing their U.S. businesses as a result of Trump's policies. Some member firms of German engineering association VDMA are delaying purchases, Andrew Adair, the group's trade policy advisor for North America, said following a trip to the United States earlier this month. "Industry appears to be pressing the pause button at the moment," he said. After weeks of threats, Trump announced on April 2 a series of broad tariffs on goods imported to the United States from most other countries. They included a 20% tariff on EU imports that was later lowered to 10% under what he called a 90-day pause following a rout in U.S. assets. Trump's declarations that other countries have been "screwing" the U.S. for years - reflecting his ire at U.S. trade deficits, including one of $235.6 billion with the 27-nation EU - have also raised the political and diplomatic temperature. Germany's LAPP, which makes everything from cables and wires to robotics for factories, is nevertheless sticking with plans to double production capacity at its New Jersey site in 2025. "As a family business, we plan for the long term, not for election periods," CEO Matthias Lapp said. One major uncertainty is what tariffs will do to demand and inflation within the United States. RBC Capital reckons that 10% of U.S. consumption is based on imports and that it will therefore be "relatively difficult for consumers to substitute away from imported goods". But consultancy AlixPartners reckons average U.S. household discretionary spending will fall by more than 10% to $27,000 in a post-tariff world, and recommends that companies adopt a "pause & monitor" approach. In each of the last three years, the EU on average exported more than 500 billion euros of goods to the U.S., mostly pharmaceuticals, vehicles and machinery, Eurostat data shows. Trump has taken aim primarily at the bloc's makers of steel, autos and car parts. While the U.S. remains the EU's biggest trading partner, the tariffs have triggered some political pushback against taking on greater exposure, with French President Emmanuel Macron asking European firms to suspend planned investment for now. Industry groups are urging European companies to focus instead on other foreign markets such as India, Latin America and Southeast Asia. "We have seen that the situation can change quickly overnight," said Sebastian Zank, head of corporates ratings production at credit ratings agency Scope. "Everyone will keep their feet still until a picture emerges that can be described as sustainable." ($1 = 0.8723 euros) Sign in to access your portfolio
Reuters
25-04-2025
- Business
- Reuters
Some European companies question US expansion amid tariff chaos
MILAN/FRANKFURT/BERLIN, April 25 (Reuters) - U.S. President Donald Trump's erratic approach to tariffs is causing some smaller European companies to question the benefits of expanding in the U.S. market - a sign of how tough it has become to navigate trade in the world's top economy. By putting levies on everything from steel and cognac to cars and sandals, Trump aims to prompt foreign firms to move investment to the United States, building new factories and creating thousands of American jobs. While major corporates from the auto and pharma sectors, have rushed to announce expansions or say they are considering them, the stream of announcements, roll-backs and exemptions has left some smaller firms warier of committing. Italy's EuroGroup Laminations ( opens new tab currently pays no tariffs on the rotors and stators it supplies to U.S. automotive customers, including Ford (F.N), opens new tab and GM (GM.N), opens new tab, from its plant in Mexico as they comply with existing import rules. But even if it had to, moving production to the U.S. would expose it to tariffs in place on the special type of steel the company uses in its automotive parts, CEO Marco Arduini told Reuters. "Skipping potential U.S. tariffs ... would not necessarily mean it can compensate for extra costs and low availability of steel," he said, adding that U.S. labour costs, which are up to six times higher than in Mexico, were also an issue. German fan and motor maker ebm-papst has put on hold plans to build a third U.S. factory or expand one of its existing U.S. sites due to current developments, including the risk that the tariffs will trigger a U.S. recession. "If there is an economic downturn in the U.S., demand may develop differently as a result," CEO Klaus Geissdoerfer said. Small- and medium-sized enterprises (SMEs) are the backbone of many economies, including Italy and Germany, both European Union members and major exporters to the United States. Because they have smaller financial buffers than blue-chip peers, they may react to fresh trade risks more quickly than bigger companies. "Contrary to Donald Trump's hopes, his protectionism will not lead to more German companies moving to the U.S. and creating jobs there," said Marc Tenbieg, head of the DMB association that represents Germany's SMEs. DMB in separate comments said a handful of SMEs, which declined to be named due to the sensitivity of the matter, are also currently reviewing their U.S. businesses as a result of Trump's policies. Some member firms of German engineering association VDMA are delaying purchases, Andrew Adair, the group's trade policy advisor for North America, said following a trip to the United States earlier this month. "Industry appears to be pressing the pause button at the moment," he said. After weeks of threats, Trump announced on April 2 a series of broad tariffs on goods imported to the United States from most other countries. They included a 20% tariff on EU imports that was later lowered to 10% under what he called a 90-day pause following a rout in U.S. assets. Trump's declarations that other countries have been "screwing" the U.S. for years - reflecting his ire at U.S. trade deficits, including one of $235.6 billion with the 27-nation EU - have also raised the political and diplomatic temperature. Germany's LAPP, which makes everything from cables and wires to robotics for factories, is nevertheless sticking with plans to double production capacity at its New Jersey site in 2025. "As a family business, we plan for the long term, not for election periods," CEO Matthias Lapp said. One major uncertainty is what tariffs will do to demand and inflation within the United States. RBC Capital reckons that 10% of U.S. consumption is based on imports and that it will therefore be "relatively difficult for consumers to substitute away from imported goods". But consultancy AlixPartners reckons average U.S. household discretionary spending will fall by more than 10% to $27,000 in a post-tariff world, and recommends that companies adopt a "pause & monitor" approach. In each of the last three years, the EU on average exported more than 500 billion euros of goods to the U.S., mostly pharmaceuticals, vehicles and machinery, Eurostat data shows. Trump has taken aim primarily at the bloc's makers of steel, autos and car parts. While the U.S. remains the EU's biggest trading partner, the tariffs have triggered some political pushback against taking on greater exposure, with French President Emmanuel Macron asking European firms to suspend planned investment for now. Industry groups are urging European companies to focus instead on other foreign markets such as India, Latin America and Southeast Asia. "We have seen that the situation can change quickly overnight," said Sebastian Zank, head of corporates ratings production at credit ratings agency Scope. "Everyone will keep their feet still until a picture emerges that can be described as sustainable." ($1 = 0.8723 euros)
