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1st Quarter 2015 QUARTERLY Vol. 26 $7.50 Festo Didactic CEO Nader Imani – Tackling Skill Shortages in Advanced Manufacturing GACC Award “Trainee of the Year” German American Business Outlook 2015 Experience primetime all the time DW (Amerika) is your source for international news and information you can count on, broadcast in German 20 hours every day. We offer the latest in business, technology, science, sports and culture with eye-opening documentaries and the best programming from ARD and ZDF. Available on Verizon FiOS TV, Time Warner Cable, Cablevision iOTV and Comcast. Subscribe to DW now! Contact Deutsche Welle | 53110 Bonn, Germany | [email protected] www.dw.de GACC_Anzeige_178x256_02.indd 1 11.02.14 15:59 EDITORIAL CONTENTS ear Members and Friends of n TRANSATLANTIC TICKER Dthe German American Chambers German American Company News 4 of Commerce, n ECONOMIST’S CORNER In the year 2014 we have witnessed Sandra Navidi, Beyond Global, LLC a whole series of acquisitions and There is Life in the Old Dollar Yet 7 mergers between German and American companies. As a matter of n COVER STORY fact, with a total transaction volume Festo Didactic - Tackling Skill of USD 67 billion the year will rank Shortages in Advanced Manufacturing 8 on top, far exceeding the respective n SPOTLIGHTS activity of the previous 5 years combined. Each transaction stands German American Business Outlook 2015 14 on its own and individual merits, GACC Award: Trainee of the Year 18 ranging from re-alignments of a GACC Highlights 2014 20 company’s business mix, expansion GACC Philadelphia into innovative and novel technol- Dietmar Rieg, Celebrates 25 Years 30 ogy areas to industry specific President & CEO, GACC New York GACC Philadelphia consolidation considerations. The Welcomes Lydia Sarson 32 high number of transactions and its in the U.S. are comparatively good, How Industry 4.0 Changes high monetary volumes are particu- adding value. the Manufacturing Industry 34 larly noteworthy, taking into consideration that traditionally Given Germany’s current account n SKILLS AT WORK acquisitions and mergers are a very surplus, these industry investments Training Tomorrow’s Skilled Workforce 36 difficult undertaking. According to seem to be more preferable over numerous studies they often do not recycling and dis-intermediating n GTAI INDUSTRY TALK create the expected stakeholder and such surpluses through financial 3D Printing Market with Great Growth shareholder value. The respective instruments which have been opaque Potential in the U.S. 38 merger and integration process is at times in the past. On this back- laborious and lengthy. In addition, drop, we approach the year 2015 n WASHINGTON UPDATE large acquisitions bear significant with confidence into growing New Year, New Trade Agenda reputational risks. U.S.-German business and commerce. A Look at the U.S. Trade Agenda for 2015 40 And we hope that fruitful discussions n Consequently we are sure that each surrounding the negotiations of the MEMBER PROFILES of these transactions has been vetted Transatlantic Trade and Investment A.T. Kearney: U.S. and EU are Still on Top 42 extremely thoroughly. And they have Partnership (TTIP) will foster the n WHAT'S ON YOUR DESK? a few themes in common. Primarily, creation of an even stronger, they speak for a robust German mutually beneficial and long-lasting Kevin Heidenreich, Deputy Representative of German Industry and Trade 44 economy and companies with strong economic relationship platform. balance sheets. These investments are n EVENT CALENDAR made with high confidence into Sincerely yours, Events & Delegations: Jan/Feb/Mar 2015 45 known and familiar markets. The valuations are transparent, financing conditions are beneficial, and transaction execution tends to be swift and efficient. Most importantly those investments try to enhance and Dietmar Rieg enlarge respective footprints to the President & CEO huge customer base in the U.S. German American Chamber of Finally, economic growth prospects Commerce, Inc. New York TRANSATLANTIC TICKER MERGERS Officer of ATLAS North America LLC. according to media reports. Front _ & _ >> www.defense-update.com runners to buy the business, which ACQUISITIONS has about $750 million in premiums, ATLAS North America Enbridge Buys 80% Stake in include Ace (ACE.N), AIG (AIG.N) and Acquires U.S.-Based Sonar U.S. Wind Farms from E.ON AmTrust (AFSI.O), Germany's Company MSTL Enbridge Inc. says it’s acquiring an 80 Sueddeutsche Zeitung newspaper and ATLAS North America LLC. (ANA) percent interest in two wind farms in The Insurance Insider reported, citing has acquired the business of Marine Texas and Indiana. The Calgary-based investment banking and industry Sonic Technology (MSTL), Ltd., based energy company is buying the stake sources. in Yorktown, Virginia, USA, via an from E.ON, a German power and gas >> www.reuters.com asset deal. Terms of the transaction company. The companies valued the were not disclosed. ANA is a wholly wind farms near Harligen, Texas and SAP Completes owned subsidiary of ATLAS ELEK- Elwood, Ind., at a total of US$650- Acquisition of Concur TRONIK GmbH, Germany. “MSTL’s million. SAP SE (NYSE: SAP) announced that it core competencies with high resolu- >> www.theglobeandmail.com has completed its acquisition of tion sonar technology are highly Concur Technologies, Inc. (NASDAQ: synergistic to the ATLAS Group’s Allianz Near Sale of Fire- CNQR), the leader in the multi-billion existing capabilities and with the man's Fund Personal Business dollar market for travel and expense addition of these new side scan Allianz (ALVG.DE) is close to selling (T&E) management solutions. With the products, expand ATLAS’ total sonar the personal insurance business of acquisition of Concur, SAP advances product offerings.” explained Sergio Fireman's Fund, a U.S. insurer the its business network strategy by Diehl, President and Chief Executive German company bought in 1991, delivering a new model for managing Exclusive cartoon for German American Trade by Heiko Sakurai www.sakurai-cartoons.de 4 German American Trade Jan/Feb/Mar 2015 TRANSATLANTIC TICKER business resources, processes and Iowa Biofuels Firm to Buy Alcoa to Buy German Tita- spend in the simplest possible way — German Company Petrotec nium through the world's largest business Renewable Energy Group Inc. has a Manufacturer Tital network. All outstanding shares of deal to buy a majority interest in Alcoa Inc. will acquire a privately Concur have been converted into the Petrotec AG from IC Green Energy held German titanium maker to boost right to receive US$129 per share in Ltd. and will make an offer for the its aerospace business. Financial terms cash. Concur has notified The Nasdaq remaining shares. IC Green agreed to of the deal for Tital, a privately held Stock Market of the completion of the accept an offer from REG European company, weren't announced. Tital acquisition and expects trading of its Holdings BV to purchase IC Green's makes titanium and aluminum common stock to be suspended 69 percent equity ownership in castings for aircraft engines and pending delisting of such shares. Petrotec AG for $20.9 million to be airframes. The bulk of Tital's 650 >> www.prnewswire.com paid in newly issued REG stock. The employees are based in Bestwig, transaction is expected to be com- Germany. VW Said to Buy pleted by the end of the year. >> www.bizjournals.com Battery Startup Stake >> www.businessrecord.com for Tesla Challenge MARKET ENTRIES Volkswagen AG (VOW) bought a stake Microsoft Acquires German _ & _ in battery startup QuantumScape Mobile App Analytics Firm RELOCATIONS Corp. with the aim of developing Microsoft on Thursday announced it Concept Laser Opens U.S. technology that can more than triple has acquired Stuttgart, Germany- Subsidiary in Dallas the range of its electric cars, accord- based HockeyApp, a provider of Concept Laser, a pioneer of techniques ing to people familiar with the matter. mobile app crash analytics services for laser melting with metals, has VW is considering using the energy- for software developers. While opened a US subsidiary in Dallas, storage technology, which is fireproof, HockeyApp will continue to offer its Texas - building on its existing for vehicles from the namesake brand analytic services, Microsoft said it operations in Germany and China. as well as Porsche and Audi, said the also plans to integrate the capabilities Growth in demand for its LaserCUS- people, who asked not to be identified of the HockeyApp solution into its ING systems over the past few years because the plans are private. Tests to products in the near future. Specifi- has led to this strategic addition, the show the system is viable for cars are cally, HockeyApp will be integrated company said. John Murray has been due to be completed in mid-2015, into Microsoft's Applications Insights named CEO of the newly-formed Con- they said. The VW of America unit service in Visual Studio Online. cept Laser Inc. bought a 5 percent holding and has >> www.rcpmag.com >> www.optics.org options to raise the stake, one of the people said. ADVERTISEMENT >> www.bloomberg.com Merck in Talks to Buy Antibiotic Maker Cubist for $7 Billion of Fine European Wares! Merck & Co. (MRK) is in talks to Come Experience the Magic acquire Cubist Pharmaceuticals Inc. (CBST), a maker of antibiotics, in a deal valued at more than $7 billion, a person familiar with the matter said. Merck would pay about $100 a share, and an agreement could be an- The CHRISTMAS SLEIGH nounced as early as this week, the 5A East Washington Street • Middleburg, VA 20117 • Telephone: (540) 687-3665 • Fax: (540) 687-3435 person said yesterday. An offer in that We ship worldwide. range would represent a 34 percent premium over Cubist’s closing share Order online at www.thechristmassleigh.com price on Dec.