Television manufacturer Loewe has a new owner: Loewe and Munich-based investors Stargate Capital GmbH have signed a notarial sale and purchase agreement. Stargate Capital is to acquire all business operations of Loewe AG and Loewe Opta GmbH and will maintain this business at the site in Kronach – including production – as a going concern. Stargate Capital will also acquire Loewe’s international subsidiaries.
“We are delighted that we have managed to find a strong partner for Loewe following all the turmoil of the past few weeks,” stressed Loewe’s chief executive officer (CEO) Matthias Harsch after the agreement had been signed. “In Stargate Capital we have found an investor that will pursue a long-term strategy aimed at restoring Loewe to its former strength. This will finally give Loewe a new lease of life.”
“Loewe is a start-up venture with a company history going back almost one hundred years, an outstanding brand reputation and high-quality products,” added the two managing directors of Stargate Capital, Boris Levin and Mark Hüsges. “We are looking forward to working with the Loewe team to develop innovative solutions for smart home entertainment systems.”
The acquisition strategy of Stargate Capital envisages the retention of around 430 of Loewe’s 525 or so employees, including all trainees, apprentices and employees of international subsidiaries. The 95 members of staff who cannot be retained work mainly in production functions and will continue to be employed until September 30, 2014. However, they will be given the option of transferring to an interim employment company with effect from October 1, 2014, where they will be offered skills training and development courses to help them find a new job.
This means that in total it will be possible to save roughly three-quarters of all Loewe jobs.
“I particularly regret the fact that not all jobs can be saved, because it is thanks to the Company’s workforce in particular that Loewe has managed to survive this difficult period,” commented Rolf Rickmeyer. “But the acquisition by Stargate Capital will lead to the retention of more jobs than was envisaged in any of the acquisition strategies put forward by other potential buyers.”
Commenting on the latest announcement, Loewe UK managing director James McConnell said: “Stargate Capital is a serious investor with clear plans for Loewe. The investment means Loewe is now solvent and with a fighting fund for growing the business. We are on track with the development of an exciting product roadmap with strategic partner Hisense which will be debuted at IFA this year. For UK dealers this will mean better products, better supply and a rejuvenated Loewe.”