Amberg, Germany — Car interior components maker Grammer, which generates 15% of its sales in China, is selling a 9.2% stake to Chinese headrest firm Ningbo Jifeng to increase sales there and protect itself from a hostile takeover threat.
The aim is to create a strategic partnership to "jointly expand the business through planned collaboration,” Grammer said in a press release.
Ningbo Jifeng, will pay EUR 60 m ($64 m) for the equity stake, which will translate into approximately 1.1m votes in Ggrammer. Ningbo Jifeng and Grammer have been partners in a joint venture, since Grammer bought Nectec, a Czech car-parts maker in 2013, according to the dpa-AFX news agency.
"We have long been active with our own plants in China and we want to significantly expand our position in the world's largest market for commercial vehicles and passenger cars. We still see significant growth potential here and are therefore very pleased to have found a strong partner for automotive business in China, said Hartmut Muller, Grammer ceo.