Turkey-based investor acquires wheel maker BBS

An investor has been found for insolvent wheel manufacturer BBS Automotive GmbH. The insolvency administrator handling the case reports that a firm called ISHManagementServices GmbH is planning to extensively invest in the Schiltach, Germany-based business. ISH is backed by İş Global Teknik İnşaat A.S., a family-owned holding group from Turkey.

BBS currently employs 270 people at its two plants and achieved a turnover of around 50 million euros in 2022. On 28 September 2023, the company filed for insolvency after sharply rising energy costs and growing consumer reluctance to spend money caused it to run into financial difficulties. This is the fourth time the company has entered insolvency, the most recent previous occasion being in 2020. The third insolvency resulted in the company’s acquisition by KW Automotive in June 2021.

The new investor calls Istanbul’s Beykoz district home and employs over 20,000 people in various sectors, including food, agriculture, industry, energy, textiles and construction/real estate. More than 20 subsidiaries belong to the holding company, including Pizza Hut Turkey and Kentucky Fried Chicken Turkey. İş Global Teknik İnşaat A.S. acts as guarantor for the freshly founded company ISHManagementServices GmbH, which is based in Ratingen, Germany.

“The new owner has agreed to retain all jobs and also to invest heavily in BBS over the next five years. The parties have agreed not to disclose further details of the transaction,” states Martin Mucha, the appointed insolvency administrator from law firm Grub Brugger. “I am delighted that despite the difficult overall circumstances, I and my team have succeeded in finding a strong investor in ISHManagementServices GmbH that will give BBS and its employees a new future and continue business operations at both locations. For the workforce, this means that their jobs will be retained.”

Exciting new chapter

ISH states a keenness to “preserve the history that has been created in Schiltach” and to “promote a co-operative environment” in order to rebuild BBS. It will focus upon sustainable growth through establishing efficient, highly productive manufacturing, “whereby the expertise the company has built up over the years is particularly valued.”

“I am honoured to lead BBS through this exciting new chapter,” says Ilkem Sahin, chairman of ISH Holding. “The focus will be on driving sustainable growth while maintaining the exceptional quality and craftsmanship that characterise BBS. Success will be a joint endeavour and we have faith in the people of Schiltach, the current workforce and the renowned German car manufacturers. Together we will work hard and succeed. We would also like to thank Klaus Wohlfarth, KW Automotive, for his achievements over the past three years. We are now taking over the baton from him to lead BBS into the next generations.”

The Turkish company emphasises that it has a “proven track record” in restructuring companies. “By working closely with the management and employees, the corporate culture will be preserved, while at the same time production will be brought up to full capacity and new investments realised,” says ISH Group. Confirming that the acquisition guarantees the preservation of jobs, skills and expertise within BBS, it adds that “the headquarters will remain in Germany, underlining the commitment to local presence and community involvement.”

53 years, 4 insolvencies

BBS was founded in 1970. The three letters represent the names of the founders and the company’s location: Baumgartner, Brand, Schiltach. The company opened a second factory in Herbolzheim, Germany in 2001. In addition to the insolvencies in 2020 and 2023, BBS previously filed for insolvency in 2007 and 2011.