New owner for wheel maker BBS

KW automotive GmbH intends to acquire wheel manufacturer BBS, and signed a contract to this end late last year. The deal is still subject to a number of contractual conditions that should be met in the near future. The company anticipates taking over the BBS brand in June 2021 together with a minority shareholder, entrepreneur Mathias R. Albert. The parties have agreed not to disclose the purchase price.

BBS filed for bankruptcy in 2020. Lawyer Thomas Oberle was appointed insolvency administrator and continued business operations. He immediately commenced a comprehensive restructuring and reorganisation of the company. German vehicle tuning and suspension company KW automotive participated in the subsequent investor search process, and in spite of difficulties linked to the COVID-19 crisis, discussions with Oberle and representatives of both BBS management and employees, and the wheel maker’s OEM customers were successful. The resulting contract was signed by KW automotive and Thomas Oberle in December.

Building on past successes

“I am very honoured that we were able to win the trust of the parties involved in the proceedings with our acquisition concept,” said Klaus Wohlfarth, founder and managing director of KW automotive. “By reaching an important milestone, I was able to inform all BBS employees about our plans on March 4, 2021. Until full responsibilities are assumed in June, there are still important agreements to be negotiated, which are the responsibility of the insolvency administrator.”

The BBS brand was established in 1970 and is known around the world for its numerous successes in motorsports as well as for the wheel designs derived from those efforts. Current feathers in the BBS cap include its upcoming exclusive rim supply to Formula 1 when the series switches to 18-inch tyres as well as exclusive supply to the American NASCAR series from 2022.

“We will build on the successes of the past. With a calculated expansion of the iconic BBS designs, and with further investments in sales and digitalisation thanks to our worldwide network of specialist dealers, we will certainly and very quickly achieve visible success,” said Wohlfarth.

“KW automotive Group’s continuation concept was so convincing for us and the OEM customers that we very quickly realised this was a great opportunity for BBS and the core team. We are convinced that we have found the best solution for the long-established brand and the production sites in Germany, a solution that is very innovative, courageous and at the same time effectively geared towards the future,” says insolvency administrator Thomas Oberle.

Global activities

KW automotive Group is a global market leader in the individual chassis systems segment. In addition to its headquarters site in Fichtenberg, Germany, the company manufactures at facilities in the Netherlands and the USA and markets its KW and ST branded products through its own sales and service operations in all important global markets. Its Belltech range of chassis products for pick-up trucks is also enjoying growth in North America. In addition, KW automotive is active in the fast-growing eSport segment with the RaceRoom, Ascher and Tracktime brands and is a pioneer of virtual motorsport

KW has also been involved in classic international motorsport for years as well and regularly celebrates success as partner to some of the world’s most renowned racing teams, most recently with a BMW M4 GTS win in the 24-hour race at the Nürburgring and Porsche 911 GT3 R victory in the 24-hour race in Dubai. Dutch brand Reiger Suspension, which recently joined the group, is the leading supplier of off-road chassis and equipped the top three teams in this year’s Dakar Rally, including the overall winner Mini.

BBS can fully face future challenges & opportunities

With the mid-year integration of BBS, KW automotive Group grows to more than 750 employees worldwide who achieve an annual sales volume of more than 160 million euros.

Discussing the new owner’s plans for BBS, Klaus Wohlfarth confirms that “KW automotive Group is committed to Germany as a business location, and its future concept ‘BBS 2024’ will deliver major investments in new manufacturing processes and flexible and competitive structures. Now BBS can fully face the challenges and opportunities of the future again and pay tribute to its roots a bit.” The former BBS of America subsidiary will be fully owned by KW automotive North America, Inc. with headquarters in Clovis, California, and Braselton, Georgia.