Luxshare-ICT becomes the majority shareholder of LEONI, after its successful recovery

The acquisition of the share package has been completed – the competitiveness of both divisions has been significantly strengthened – the restructuring program is fully on schedule.

LEONI has reached an important milestone in its sustainable recovery process – a path firmly driven under the leadership of CEO Klaus Rinnerberger and former sole owner Stefan Pierer. The company has successfully completed an extended partnership between its two shareholders, Luxshare-ICT and Stefan Pierer, thus marking a decisive step in ensuring the long-term stability and future growth of LEONI.

Following the signing of an agreement in September 2024 and the receipt of all necessary regulatory approvals, Luxshare-ICT took over a 50.1% stake in LEONI AG, thus becoming the majority shareholder of the Wiring Systems Division (WSD), which until then was exclusively owned by Stefan Pierer. In addition, Luxshare’s subsidiary TIME Interconnect has taken over 100% of LEONI AG’s Automotive Cable Solutions (ACS) division.

Shared customer base: expanded access to global markets The new partnership promises to significantly strengthen LEONI’s competitive position. By combining LEONI’s long-standing relationships with major global OEMs and Luxshare’s strong connections with rapidly expanding customers such as Tesla and major Chinese automakers, the two companies are well positioned to gain a strategic role in the global market. As Chinese OEMs increasingly penetrate the markets in Europe and America, LEONI is ready to be a reliable partner in delivering advanced wiring systems, thus supporting their expansion and at the same time strengthening its own market presence.

At the same time, the acquisition of ACS – an independent automotive cable supplier – gives TIME Interconnect considerable access to European markets, while allowing ACS to strengthen its presence and proximity to key customers in the growing Asian market.

Vertical integration: complementary product offering The products and solutions offered by LEONI and Luxshare are largely complementary, generating significant synergies in their portfolios. Through joint development efforts, Luxshare’s electronic components will allow LEONI to expand its vertical integration within the production of wiring systems. This progress will bring increased flexibility, shorter time to market and optimized costs. Together, the two companies will deliver complete, end-to-end solutions covering the entire added value of the architecture  complete, end-to-end solutions covering the entire added value of the electrical/electronic (E/E) architecture – from the design and manufacture of wiring to electronics and software.

Global production network: more flexibility and automation A high degree of complementarity is also found in the production area. LEONI has made significant progress in design for automation and in the automation of final assemblies. Combining these strengths with Luxshare’s complementary competences in the field of automation will stimulate innovation in joint processes and increase operational efficiency. The integration of LEONI and Luxshare’s global production networks will also enable both companies to respond quickly and efficiently to regional market dynamics and the constantly changing needs of customers around the world.

Financial recovery: fully on track With this partnership, LEONI is well positioned not only for an operational recovery, but also for achieving sustainable financial stability – a goal that CEO Klaus Rinnerberger has been pursuing with determination since taking office in the summer of 2023. The restructuring program is firmly on track, despite the ongoing uncertainties in the global automotive market. As part of this process, LEONI is reducing overall costs by 20% in all departments and adapting its capacities to respond to fluctuations and specificities in regional markets. In parallel, the company is continuing to optimize production costs by improving processes and increasing efficiency along the entire value chain.

“Our complementary portfolios, production capacities and positive customer feedback demonstrate that LEONI and Luxshare form an ideal partnership,” says Klaus Rinnerberger, CEO of LEONI.

Group LEONI is a global provider of products, solutions and services for energy and data management in the automotive industry. The value chain ranges from standardized cables, special and data cables to highly complex cabling systems and related components, covering the entire process – from development to production.