Superior Essex Inc. has signed an agreement to purchase Lacroix + Kress GmbH, the leading oxygen-free copper (OFC) drawing manufacturer in Europe, from Mutares SE & Co. KGaA.

With OFC being a key component in electric vehicles (EVs), this strategic acquisition further solidifies a commitment by Superior Essex to the growing EV market and will enhance customer satisfaction and competitiveness within the industry.

It will also allow Superior Essex to create vertically integrated operations in Europe between its magnet wire businesses and a joint manufacturing site in Bramsche, Germany. A second plant in Neunburg vorm Wald, Germany, will also expand the specialty wires offerings.

Klaus Borstner is the President of Essex Furukawa Magnet Wire Europe, Essex Energy Italy and Global IVA Enamels in Europe and China. He believes it will create synergy between the plants and more rapidly advancing innovation for the automotive, energy, and industrial industries.

“This is an exciting investment into not only the future but also the present,” Borstner said. “Having the two plants share a location in Bramsche can immediately improve efficiencies, and increase innovation, while the new location in Neunburg vorm Wald allows us to expand our product portfolio.

“We believe that this acquisition will help add value to our existing customers as well as create new opportunities as we honour the existing relationships that originated with Lacroix + Kress.”

The sale of Lacroix + Kress to Superior Essex follows Mutares’ exit strategy to find the ‘best new owner.’

“We believe that Superior Essex can leverage significant synergies not only due to the already strong business relationship between the two companies but also due to their shared local presence in Central Europe,” Johannes Laumann, CIO of Mutares SE & Co. KGaA, said.

Both Superior Essex and Lacroix + Kress were previously affiliated through a European Joint Venture with Nexans in 2005. This acquisition brings the two companies once again under the same ownership.

The transaction is expected to be completed during the first quarter of 2023.

Source: https://superioressex.com/
Image source: Courtesy of Superior Essex

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