KW Automotive to buy 'insolvent' wheel maker BBS

FICHTENBERG, Germany — Performance suspension systems producer KW Automotive G.m.b.H. has secured a deal to buy custom wheel producer BBS G.m.b.H., which has been operating under insolvency administration since mid-2020.

Terms of the deal, expected to be completed by June, were not disclosed.

"I am very honored that we were able to win the trust of the parties involved in the proceedings with our acquisition concept," KW Automotive Principal Klaus Wohlfarth said in a statement.

"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."

Fichtenberg-based KW Automotive emerged as the winning bidder for BBS after it participated in an investor search process and presented the insolvency court with what it's calling a "pioneering acquisition concept."

Schiltach, Germany-based BBS produces alloy wheels at plants in Schiltach and Braselton and Gainsville, Ga.

The company is the designated wheel supplier for both Formula 1 and NASCAR as both series transition to an 18-inch tire/wheel spec next year.

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

KW Automotive Group is committed to Germany as a business location, Mr. Wolfarth added, and is putting forth a "BBS 2024″ rescue plant that will deliver "major investments" in new manufacturing processes and flexible and competitive structures.

In North America, KW Automotive North America Inc. in Clovis, Calif., will assume responsibility for the former BBS of America subsidiary in Braselton, Ga.

The company's name, BBS, is a nod to the company's founders — Heinrich Baumgartner and Klaus Brand — and the headquarters in Schiltach, in Germany's Black Forest.