Elektrobranche: Varta Consumer Batteries geht eigenständig an den Start

Varta Consumer Batteries, the consumer batteries division of the insolvent Varta Group, is set to launch as an independent company. The Federal Ministry of Economics approved the separation of the profitable consumer business from the Varta AG group, the company announced. Around 990 jobs are expected to remain intact, with no planned layoffs during the separation.

The central production site for household batteries is located in Dischingen, Baden-Württemberg, where production runs 24/7. In addition to household batteries, the product range includes button cells, batteries, hearing aid batteries, power banks, chargers, lights, and charging accessories. Mark Munz, the CEO of the new Varta Consumer Batteries GmbH & Co. KGaA, stated that the business unit is stable and well-positioned among customers and business partners.

"Subject to further market development, the growth-oriented continuation of the successful business as an independent company, as has already been the case in the past, is a business decision that makes sense and creates security for employees as well as benefits for Germany and the region as a whole." Varta creditors endorse the separation.

The company announced investments at the Dischingen site, though the exact amount was not disclosed. In the run-up to the separation, the main financiers of the former Varta AG group supported the transition of the household batteries area into a standalone holding structure. The so-called ad-hoc creditor group consists of Deutsche Bank and the financial investors RBC BlueBay, Blantyre and Whitebox.

The new company sees growth potential for its products, with an average annual revenue growth of three to four percent expected until 2029, despite already well-occupied battery markets worldwide. A focus of the growth strategy will be European markets, with additional potential in South America, Asia, and Canada. In Southeast Asia and South America, the company has already established initial business relationships.

The Varta AG group from Ellwangen, Baden-Württemberg, had initially submitted an application for an insolvency procedure in management on its own behalf and three other units in mid-July. The household batteries business was not affected. Initially, the four units were placed in a classical provisional insolvency procedure.