Due to being not German speakers and relying on Google translate that we may have missed the clarification issued by Heckler & Koch on news reports that it is up for sale.  We posted a story about this as reported in the German media, that last week the company is up for sale and that an application has been filed at the Federal Ministry for Economic Affairs and Energy.

The company is saddled with debts even if it was able to turn some profit in the first half of the year after two years of losses. As it works itself to be in the black it needs to have an infusion of investment to support its operations or be bought by another entity that can replenish its finances. In this case the company clarifies that it is an “acquisition” not a “sale” as the person who is the applicant of acquiring majority ownership of the company is already working in the company.

Here is the official statement from Heckler & Koch which is translated using Google translate:

Statement on the current reporting
08/11/2019

For the current reporting around the H & K AG ("Heckler & Koch before selling to letter box company") the enterprise expresses itself as follows:

"As a public limited company and thus as the object of an acquisition *, we are generally not involved in an acquisition transaction.

In this case, we are aware of the existence of a corresponding application at the Federal Ministry for Economic Affairs and Energy.

The applicant is already involved in our company today, so we do not expect any change in strategic direction.

We welcome the fact that the acquisition process by the Federal Ministry for Economic Affairs and Energy will be examined intensively in accordance with applicable law, as stipulated by the German Foreign Trade Ordinance. "

*In an earlier version of this release, it was called Sale. The technically correct term is acquisition.

(Heckler & Koch German Headquarters)

Whilst the Andreas Heeschen owns two-thirds of the company, according to reports French investor Nicolas Walewski, who founded the London-based fund management company Alken Asset Management, is calling the shots inside the company. Heeschen is said to have pledged a portion of his shares to Walewski, making it an internal transaction, rather than actual sale of the company to an outside entity.

The BND or the German Federal Intelligence Service has been asked by the mentioned Ministry in order to a background check on those doing the internal acquisition as it is very important for the German government that such acquisition can be examined whether national security interests are violated according to the Foreign Trade Act. This is especially necessary as a foreigner is joining a German defense contractor. It is possible, after the conclusion of the checks done by the BND, that the acquisition may be blocked.

As mentioned in the statement, the company expects no change in the strategic direction. But you can never tell, as with any new majority owner, there will always be changes in order to protect that investment and generate a return.