The brake supplier Knorr-Bremse aims to boost declining revenue through a spree of acquisitions, the company’s chief executive, Klaus Deller, told Handelsblatt.
“In 2016 alone, we initiated seven acquisitions. After closing, we will add another billion in revenue,” Mr. Deller said in an interview. He indicated that Knorr could top €10 billion ($10.6 billion) in revenue over the next five years.
The global market leader in truck and train brakes is trying to leverage acquisitions to power its way through a rough patch. After years of growth, the company saw revenue drop by 5.8 percent to €5.5 billion ($5.8 billion) in 2016.
Mr. Deller attributed the drop to weak markets, both for truck brakes in the United States and high-speed trains in China. He expressed confidence, however, that Knorr would return to growth in 2017.
“The markets are recovering, and we anticipate a return to growth this year,” Mr. Deller said.
Knorr, which has 24,000 employees, made headlines at the end of 2016 with the acquisition of its Swedish competitor Haldex, after beating out its much larger rival, ZF Friedrichshafen, in the bidding process. Mr. Deller said he doesn’t anticipate any problems with anti-trust regulations in the Haldex deal.
“The anti-trust green light is less a question of if and more a question of how and when,” he said.