Hongteng Precision announced the acquisition of PRETTL SWH Group for 186 million euros

Recently, according to Taiwan Media United News, Hon Hai’s Hon Teng Precision Technology (FIT) announced that it will acquire the German automotive wiring harness PRETTL SWH Group for 186 million euros to expand the strength of FITEV’s key components. The acquisition process was completed in the second quarter.

Regarding this acquisition, FIT said that because it sees the PRETTL SWH Group product portfolio focusing on niche markets, it coincides with FIT’s past competitive strategy of targeting high-margin and high-precision manufacturing in the information and communication market, which is different from automotive components. The manufacturing plant is traditionally constructed according to drawings, and PRETTL SWH Group relies on its solid automotive component design capabilities and long-term close cooperation with automotive customer groups to have a fairly stable order.

FIT further pointed out that with more than ten years of experience in the automotive industry, PRETTL SWH Group, with its leading position, assists customers in the development and manufacture of high-end automotive sensor wiring harnesses and connectors and automotive power solutions. Automobile manufacturers have also long been cultivating first- and second-tier suppliers of large-scale vehicles in the world. In addition, looking back at the market performance in recent years, PRETTL SWH Group’s historical financial performance is quite stable, and its operating performance is also growing year by year. In the short term, it can bring about a significant annual revenue contribution to FIT. In the future, it is expected to improve FIT’s growth with a better product portfolio Overall gross margin performance.

According to FIT, the acquisition can bring FIT an annual revenue contribution of about 350 to 400 million euros in the short term, and it is expected to create a better product portfolio in the future to increase FIT’s overall gross profit margin.

In the longer term, the acquisition is of great significance to the development of FIT. FIT said that this is one of the important layouts for the fields of electric vehicles, acoustics and 5G AIoT, and it is moving towards the target milestone of breaking through 30% of the “3+3” new product portfolio in 2023.

(Proofreading/Li Xiaoyan)