Struggling battery company CustomCells secures financial backer
The insolvent German battery cell manufacturer, CustomCells, has undergone a significant transformation as a consortium led by existing investor Abacon has taken over key parts of the company. This move follows CustomCells' insolvency filing at the end of April due to its main customer, Lilium, becoming unable to pay[1].
The acquisition comes with a strategic realignment, focusing more on electric mobility and defence applications, as opposed to the aerospace sector[2]. The new ownership plans to concentrate efforts on innovative battery cell development tailored for electric vehicles, scaling down less critical activities, and restructuring the workforce accordingly[1].
While the exact purchase price remains confidential, sources indicate it lies in the low single-digit million-euro range[1]. In addition to the acquisition cost, a double-digit million-euro sum has been earmarked as follow-up investment. This capital infusion is intended to maintain the company’s operational continuity post-acquisition and support a production relaunch under the restructured ownership and strategy[1].
CustomCells, founded in 2012 as a spin-off of Fraunhofer-Gesellschaft, has established itself as a sought-after development partner for industry and research in the high-performance sector[3]. The Abacon-led consortium's intervention aims to preserve and build upon this innovative foundation while steering the company back to financial health and market relevance in the growing electric mobility sector[1].
The consortium is not alone in this investment. Alongside Abacon, two other investors are involved in the takeover, one of them being the family office Salvia[1]. Notably, CustomCells won prominent early investors such as Porsche Ventures, 468 Capital, Vsquared Ventures, and Abacon[4].
In the new leadership, Jan Diekmann, the former innovation chief at CustomCells, is set to join the management board. Benno Leuthner will also join the management board to form the new leadership with Jan Diekmann[1]. Dirk Abendroth, the ex-CEO of CustomCells, will continue to advise the company but will not be part of the management board[1].
The takeover will result in some changes in the company's geographical footprint. Only the headquarters in Itzehoe will remain after the takeover, while the branch in Tübingen will be closed[1]. Despite the restructuring, around 80 percent of the workforce will continue to be employed at the main location[1].
The insolvency administrator, Malte Köster, has confirmed the completion of the investor process[1]. Abacon's investment chief, Sven Rossmann, stated that CustomCells has immense potential[1]. With this investment, the consortium hopes to revitalise CustomCells and position it as a key player in the electric mobility sector.
[1] https://www.manager-magazin.de/wirtschaft/customcells-insolvenz-abacon-kauft-teilen-e-auto-batteriezellen-24660910.html [2] https://www.faz.net/aktuell/wirtschaft/startups/customcells-insolvenz-abacon-will-teilen-kaufen-17350242.html [3] https://www.customcells.de/en/about-us/ [4] https://www.kurier.at/wirtschaft/customcells-e-auto-batteriezellen-insolvenz-abacon-kauft-teilen-10090524
Technology will play a significant role in the strategic realignment of CustomCells, with a focus on electric mobility and defence applications, following the acquisition by Abacon and their consortium. The new ownership aims to invest in innovative battery cell development tailored for electric vehicles, using the funds to maintain operational continuity and support a production relaunch.
