VARTA Consumer Batteries GmbH & Co. KGaA will again operate as an independent company in the future. The Federal Ministry of Economics has recently approved the spin-off of the economically successful consumer business unit from the insolvent VARTA AG Group. For the 990 employees of VARTA Consumer Batteries, the currently completed restructuring provides long-term prospects for the future: all existing jobs are preserved, new positions will be created, and investments are secured.
For the ongoing business operations of VARTA Consumer Batteries GmbH & Co. KGaA, the reorganization means continuity. Production and deliveries will continue without interruption, existing contracts and supply agreements will remain unchanged. For customers, suppliers and business partners of VARTA Consumer Batteries, there are no restrictions as a result of the spin-off. Warranty services and other customer claims also continue to exist in full.
Mark Munz, Managing Director of VARTA Consumer Batteries GmbH & Co. KGaA, said:
„The VARTA Consumer Batteries business unit is stable and well positioned with customers and business partners. Subject to market developments, the growth-oriented continuation of the successful business as an independent company, as has already been the case in the past, is logical from an entrepreneurial point of view and creates security for the employees as well as advantages for Germany and the region as a whole. I would like to thank everyone involved for their trust and commitment to our company.“
Financial separation from the former VARTA AG Group completed
With the spin-off, VARTA Consumer Batteries GmbH & Co. KGaA is also financially separated from the previous VARTA AG Group. The consumer business is no longer part of the joint group financing and is no longer liable with guarantees or collateral for financing obligations of the former group. VARTA Consumer Batteries can thus set up its financing independently of the other VARTA companies. At the same time, VARTA Consumer Batteries was provided with several million euros in fresh capital. This gives the company a solid financial basis for its further development.
The reorganization was made possible through the support of key lenders from the former VARTA AG Group, constructive discussions at the national and local political levels, and a favourable decision from the Federal Ministry of Economics. The core financial backers will acquire all shares in VARTA Consumer Batteries and support the management and further independent development of the company. They see the company's market position, product portfolio, production capacity, and business strategy as a sustainable foundation for the long term.
All locations and jobs are to be retained
VARTA Consumer Batteries currently employs around 990 people, of which around 820 are in Germany and 170 abroad. The central production site for household batteries is located in Dischingen in Baden-Württemberg. Production there operates on a three-shift system. Administrative and logistical functions are bundled at the Ellwangen-Neunheim site.
No staff reductions are planned as part of the spin-off. Rather, VARTA Consumer Batteries will establish and expand additional structures of its own. This applies in particular to the areas of IT, finance, controlling, procurement and supplier relations, some of which were previously organised within the VARTA AG Group. Recruitment is planned for these functions in the coming months.
Growth in Europe and international markets
VARTA Consumer Batteries is a market leader with its household batteries in numerous European markets. In addition to household batteries, the product portfolio includes, among other things, button cells, rechargeable batteries, hearing aid batteries, power banks, chargers, lights, and charging accessories. The company now intends to continue its successful growth as an independent company and further strengthen its solid market position.
VARTA Consumer Batteries expects average annual sales growth for its entire portfolio of three to four percent until 2029, despite relevant markets already being well developed worldwide. One focus of the growth strategy is on European markets. These include certain non-EU members and parts of southwestern Europe. In addition, the company sees growth opportunities in South America, Asia and Canada. The first business relationships have already been established in Southeast Asia and South America.
VARTA Consumer Batteries focuses specifically on its quality-oriented, European positioning. The household batteries are produced in Germany; the company obtains almost entirely its raw materials from the European Union.
At the same time, the company is continuing to expand its digital sales channels and direct-to-consumer business. In the future, e-commerce is expected to make an even stronger, additional contribution to the brand’s growth and sales.
Investments in Dischingen
VARTA Consumer Batteries is continuing to invest in its production site in Dischingen to support its growth strategy. Significant investments are planned by the end of 2028, with implementation of some already begun. The funds will be allocated primarily to state-of-the-art, high-tech equipment; increased automation; and the transition from dual-material (cardboard and plastic) packaging to all-cardboard packaging. In the packaging sector, a significant reduction in plastic consumption has already been achieved since 2020. Optimized plant designs are also continuously improving the performance, energy efficiency and sustainability of production. VARTA Consumer Batteries in Dischingen will further expand its status as the most modern household battery production facility in Europe with the highest global technological standards.
The transaction in detail
In the run-up to the spin-off, the core financiers of the former VARTA AG Group had supported the transition of the consumer business into an independent holding structure. To that end, they exercised their lien on the company shares held by the shareholder of the consumer business. VARTA Consumer Batteries was then provided with several million euros in new capital. As part of the reorganization, all financial liabilities, guarantee obligations, and collateral that the companies in the consumer business had previously provided in connection with the Group’s prior financing arrangements were released. Neither these guarantees nor the collateral have ever been called upon or enforced with respect to companies in the consumer business, nor is there any intention to do so. As a result, VARTA Consumer Batteries is essentially relieved of its obligations under the previous Group financing and is significantly strengthened financially.
Dirk Schabel, Mayor of the municipality of Dischingen, commented:
„After intensive but constructive dialogue, also with us as the production site in Dischingen, this solution was achieved. This will save hundreds of jobs in our community, and VARTA as a manufacturer of household batteries will be retained here. This is what industrial policy Made in Dischingen looks like.“
Michael Dambacher, Lord Mayor of the City of Ellwangen, said:
„With the Federal Ministry of Economics' approval, VARTA Consumer Batteries GmbH & Co. KGaA can once again operate as an independent company while maintaining its administrative site in Ellwangen-Neunheim. By establishing its own administrative functions in IT, finance, controlling, procurement and supplier relations, we are pleased that further employees from the previous VARTA AG Group will find new tasks here. We have energetically lobbied the Federal Chancellor for this. And we will also demand good solutions for the other companies of the VARTA AG Group in the insolvency proceedings and make our contribution.“
Sabrina Zuther, Chairwoman of the works council of VARTA Consumer Batteries in Dischingen and local board member of IG Metall Heidenheim, said:
„The workforce must not have to pay the bill for the wrong decisions made by VARTA AG's management in the past. With VARTA Consumer Batteries becoming independent again, we have succeeded at the last minute in securing a healthy and successful company as well as numerous jobs. Our solidarity now goes out to the many colleagues in the other companies of the VARTA Group who are fighting to preserve their jobs in the insolvency proceedings. We are pleased that some of them will find new career prospects at VARTA Consumer Batteries as part of the transfers.“
Stefan Vetter, Chairman of the General Works Council of VARTA Consumer Batteries in Ellwangen-Neunheim, said:
„The preservation of all jobs in Neunheim and Dischingen is, first and foremost, good news for employees. But the next steps must now follow. Our goal remains to secure as many jobs as possible and to retain within the company the expertise that has been built up at VARTA over decades. The VARTA brand stands for almost 140 years of industrial history, experience and innovation. This potential must be utilised so that we can continue to compete successfully in the market in the future. In this regard, we expect the federal government to show significantly greater commitment to preserving industrial value creation and jobs in Germany.“