VARTA AG plans capital increase and comprehensive restructuring concept

VARTA AG is in advanced discussions with the financing banks on far-reaching restructuring measures to stabilise the company financially and operationally. The restructuring concept, which has been developed in recent weeks within the framework of an IDW-S6 expert opinion, includes targeted measures to increase profitability and improve the financing structure. The proceeds of a targeted capital increase of 50 million euros are to be used for investments in important innovation fields of the company.

Following the challenges of 2022 triggered by the global crises, which most recently weighed on earnings, VARTA AG has held talks with its financing banks in recent months on the further restructuring and stabilisation of the company. An IDW-S6 expert opinion prepared by KPMG confirms VARTA AG’s ability to restructure and the company’s clear growth prospects. The prerequisite is the group-wide, consistent reduction of the cost base in the areas of procurement, internal processes and personnel as well as a further diversification of the customer base and investments in growth areas. The restructuring concept is subject to the final approval of the responsible bodies of the banks.

The measures are intended in particular to increase profitability in the areas of micro batteries, small lithium-ion button cells (CoinPower) and household batteries (Consumer Batteries). At the same time, VARTA is consistently expanding its customer base. The company is currently in concrete negotiations with new customers, particularly in the CoinPower area.

Dr Markus Hackstein, Speaker of the Executive Board of VARTA AG: “With the restructuring concept we have presented, we are maintaining a balance between necessary restructuring measures and the development of our growth potential. The current economically challenging situation requires clear steps in order to be able to operate successfully and profitably again. Through the comprehensive measures, we are stabilising the company and securing the innovative strength of VARTA AG in the long term. Unfortunately, it is unavoidable that this procedure also involves savings in personnel costs. In view of the current economically volatile times, we are extremely aware of our responsibility towards our employees. We have therefore offered the works council to immediately begin talks on the form of the concrete measures.”

Dr Michael Tojner, Chairman of the Supervisory Board of VARTA AG: “The restructuring concept secures VARTA’s future viability. The implementation of the measures is not easy, but it is necessary to return to the path of success. As a traditional brand known for quality and innovations Made in Germany, the company is already strongly positioned to grow with and in the future markets of energy transition and e-mobility. With the targeted capital increase and the operational and financial measures now in place, we are creating the conditions for VARTA to fully play to these strengths again.

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