German automotive supplier ZF Friedrichshafen is currently exploring various options for the sale of its passive safety business and is also considering an initial public offering (IPO). The company aims to make a decision on the division, which includes airbags, seat belts, and steering wheels, by 2024, depending on market conditions. To facilitate this process, an investment bank has been tasked with finding potential investors.
During an interview at the IAA Mobility show in Munich, CEO Holger Klein stated, "We are currently taking the first step toward a carve-out." The sale or partial sale of this business unit will help ZF Friedrichshafen reduce its debt, allowing for lower interest payments and increased investment in research and development. Klein added, "At this point, we have more ideas than money. That's why we want to focus our technology portfolio."
The passive safety division consists of approximately 33,000 employees and accounted for a tenth of ZF Friedrichshafen's group sales, which totaled 43.8 billion euros ($47.2 million) last year.
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