SCHMID Group, a global solutions provider for the high-tech electronic, photovoltaics, glass, and energy systems industries, today announced the sale of SCHMID Silicon Technology Holding GmbH (SCHMID Silicon) to Group14 Technologies, the leading global manufacturer and supplier of advanced silicon battery materials. Terms of the transaction were not disclosed.
On May 31, 2023, SCHMID Group announced that it is planning to list on the New York Stock Exchange in the fourth quarter of 2023, through a business combination with Pegasus Digital Mobility Acquisition Corp. In readiness for the U.S. listing, the strategic divestiture of its Silicon business unit empowers SCHMID Group to further focus on its target markets, which include high-end electronics, photovoltaics, and energy storage, and to accelerate investments in these key business segements. SCHMID Group will utilize the proceeds from the sale to further strengthen its balance sheet, improve its debt structure and to become, together with former lenders of the SCHMID Group, a strategic investor in Group 14.
Christian Schmid, CEO of SCHMID Group stated: “This strategically planned sale allows us to fully focus on the strength of our core business as we work towards our planned NYSE listing. With Group14, we have found a company that is as innovation-driven as SCHMID Group, with equally strong values and exciting growth plans for the business and its employees.”
Group14 will combine SCHMID Silicon’s leading silane process technology with its proven manufacturing capabilities to deliver high-energy density silicon battery materials, allowing the company to protect customers and partners from potential supply chain disruptions and to localize integrated silicon battery technology manufacturing in Europe. Group14 will also bring online SCHMID Silicon’s state-of-the-art silane factory in Spreetal (Schwarze Pumpe). All current SCHMID Silicon employees will be retained and integrated by Group14. Furthermore, once the factory is online and operational, overall headcount is expected to grow significantly according to Group14’s projections.
“Group14 has been rapidly growing across critical markets, and now we’re looking forward to being closer to our automotive customers in Europe to support the global energy transition,” said Rick Luebbe, CEO & co-founder of Group14 Technologies. “Germany has long been the home for many of the world’s largest and oldest automakers, and we’re looking forward to putting this critical stake in the ground to bring forth a resilient silicon battery supply chain capable of meeting global demand right now.”
News Source: CISION PR Newswire