At a Glance

2008/11/04 European Commission Approves Acquisition of Cherry Corporation

• Strengthens ZF electronics expertise
• Cherry to continue as ZF Business Unit Electronic Components

The EU Competition Authority in Brussels has given the green light to the acquisition of Cherry Corporation by ZF Friedrichshafen AG. According to a statement by the EU Commission, competition within the European Economic Area (EEA) would not be hampered by the merger. The extent to which the two companies operate in the same markets was found to be very minor. The way is thus clear to integrate approximately 3,100 Cherry employees around the world into ZF Group.

With this acquisition, ZF Friedrichshafen AG continues to strengthen its position as a leading supplier of driveline and chassis technology to the auto industry. “Cherry Corporation’s expertise profile – particularly in the ever-increasingly important areas of electronics, software, mechatronics and plastics engineering – complements our existing range of capabilities in a great many ways,” stated ZF CEO Hans-Georg Härter. The company will be integrated into ZF Group as Business Unit Electronic Components as ZF Electronics GmbH. The new company will be led by former Cherry Corporation CEO Günter Murmann, who will report to ZF Vice President Technology, Dr. Michael Paul.

Cherry Corporation brings production facilities in Germany, the Czech Republic, Mexico, Hong Kong, China and India to the merger. Founded in 1953, the electronics manufacturer engineers and produces, among other things, switching systems, sensor systems and controller systems for the auto industry. Cherry Corporation’s vast know-how in electronics, software, mechanics and plastics engineering goes, for instance, into mechatronics modules, sensor devices, operating switches, gearshift modules and the electronics for keyless-entry systems. The company employs about 3,100 employees worldwide. Approximately one half of its personnel is in Germany, where its headquarters is located in the town of Auerbach, situated between Nuremberg and Bayreuth. It has around 900 employees in North America, 250 in Asia and about 400 in Eastern Europe. Its total sales is approximately 400 million dollars (250 million euros), 65 percent of which is generated in Europe.

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