HOHENEICH, AUSTRIA—Backhausen has reportedly sold 50 percent or more of its shares to Sheik Mohamed Al Jaber, a Saudi businessman and owner of JJA Beteiligungsverwaltung, an Austrian company.

The original story was released in Courier, an Austrian newspaper on August 28 and the deal was completed by September 15. Backhausen has also sent out its own press release confirming the sale.

The deal effectively saves Backhausen from bankruptcy since its most recent financial figures were in the red as a result of tough Asian competition.  Behind the scenes it was heard that the bank was pressing Backhausen to find a partnerdue to a net loss of 650,000 euros in 2010. A restructuring plan was drawn up along with the goal of finding a strategic investor. 

"We were looking for a strategic partner with Al Jaber," Backhausen said.  We have found a partner with whom we can realize synergies. Business operations should be directed on a joint partner basis, says Backhausen. We want to expand the business internationally."

How much Al Jaber is investing at Backhausen, is not known. "We will jointly run the business,“ Backhausen said. Backhausen has been operated as a family business since 1849. Reinhard Backhausen continues at the helm as CEO. A change in management is not planned.

Backhausen said it exports 70 percent of its production to 40 countries, he said. Backhausen serves the upscale stores and sells equipment for hotels and concert halls. Al Jaber,  reportedly has very good contacts in the Arab world and also owns hotels. This should provide for additional orders.