Jebsen & Jessen to divest its 50% stake in JJ-LAPP joint-venture
The shareholders of JJ-LAPP have signed an agreement under which industrial conglomerate Jebsen & Jessen will divest its 50% stake in the joint venture to its joint-venture partner and leading cable provider the LAPP Group. This agreement, once in force, will enable a more streamlined and optimised supply-chain set-up for the benefit of the customers across ASEAN.
Pending the satisfaction of standard conditions precedent, the parties expect the deal to be closed by end of this year or early next year. At completion all activities, including the fast-growing renewable energy business, will continue. The name of the business will be changed in due course to reflect the new ownership.
The shareholders have also agreed that Jebsen & Jessen will continue to provide certain business services, including IT support and accounting services, under a separate Transitional Services Agreement. Jebsen & Jessen’s offshore and marine cable activities in Cables International are unaffected by this transaction and will remain unchanged.
Formed 22 years ago, the JJ-LAPP joint venture has grown from a single-digit million dollar cable distributor into a leading connectivity solutions provider with more than S$200m turnover across ASEAN.
“This transaction will further unlock efficiencies and synergies and ensure future strong growth for the company,” said Jebsen & Jessen Group CEO Per Magnusson.
For JJ-LAPP employees, this transition means becoming part of a global market leader in cable technology with a presence in over 80 countries, 26 production sites, world-renowned brands and a strong reputation for integrated connectivity solutions.
“The joint venture has thrived for over two decades, and we look forward to being closer to our customers in the region through this agreement,” said LAPP Asia Pacific CEO Richard Lee.
About Jebsen & Jessen
Part of a global family enterprise that dates back to a trading partnership formed in Hong Kong in 1895, Jebsen & Jessen Group headquartered in Singapore is today an industrial conglomerate with a diverse network of businesses spanning manufacturing, engineering, mining and distribution activities. Core businesses include cable technology, industrial garnet, ingredients, packaging and other industrial technology, across more than 15 countries in five continents. Over 4,000 colleagues work as one to develop meaningful products and services for the myriad customers served. For more information, visit www.jjsea.com.
About LAPP Group
Headquartered in Stuttgart, Germany, LAPP is a leading supplier of integrated solutions and branded products in the field of cable and connection technology. The company's portfolio includes standard and highly flexible cables, industrial connectors and screw technology, customised system solutions, automation technology and robotics solutions for the intelligent factory of the future, as well as technical accessories. LAPP’s core market is in the industrial machinery and plant engineering sector. Other key markets are in the food industry, logistics, as well as the energy and the mobility sector. For more information, visit www.lapp.com.
About JJ-LAPP
JJ-LAPP was founded as a joint venture between Jebsen & Jessen Group and LAPP Holding Asia, a subsidiary of LAPP Group in Germany, to become the leading cable and connectivity solutions provider in ASEAN. We bring value to our customers by localising German innovation, manufacturing our high-quality products in Indonesia, and complementing this with a suite of products sourced from world-renowned brands. This enables us to provide a wide range of solutions that maximises return on investment for our customers. For more information, visit www.jj-lapp.com.