The German businessman who created a large family multinational

Along a relatively short stretch of the C-17 highway, near Parets del Vallès, Montmeló, Santa Perpètua, and a few other nearby towns, we find a truly interesting array of large companies headquartered there: Pastas Gallo, Reckitt Benckiser, Grifols, Mondelez, and the former Idilia Foods. We can also take note of another company called Freudenberg, which may not be as well-known, but has been based in Catalonia since the late 1960s.

When this German company arrived in the country, it had already been established for almost 120 years in Baden-Württemberg, initially under the name Heintze & Freudenberg, since the pioneers were two partners who named the company after themselves. Our protagonist's life had not been easy. At the age of nine, he was orphaned, a circumstance that coincided with the closure of the family business, a boarding house, which put the family in a very precarious situation. Only five years later did he become independent, because he began working as an apprentice in his uncle's leather business, far from home. When he felt sufficiently established in the trade, he attempted to expand his horizons by opening a tobacco shop, which did quite well and allowed him to start saving. After fifteen years working for his uncle, he managed to take the step of buying part of the business, a 20% stake that he was able to finance thanks to the savings he had accumulated. However, his demanding work schedule made it impossible for him to pursue formal education beyond primary school. Everything he learned, including languages, was due to his strong self-taught nature.

From his new position as a partner in 1844, he faced challenges beyond working with leather or dealing with clients, such as the banking crisis that left them without credit. Unable to secure financing, the family business went bankrupt in 1849, and Freudenberg was forced to start over. Fortunately, his father-in-law—a wealthy man—intervened and allowed Freudenberg to return to the business world, now accompanied by Heinrich Christian Heintze, who had also been his uncle's partner in the defunct company. This explains the firm's initial name, which we mentioned at the beginning.

The new company—also in the leather business—was an absolute success, and in its early years, it grew rapidly. From that moment on, both partners understood that the future of the business had to be based on two aspects: internationalization and innovation. Thus, they built a network of relationships outside Germany that extended across the United States, Switzerland, France, the United Kingdom, and the Ottoman Empire (present-day Turkey). Furthermore, they acquired foreign patents for high-quality products to differentiate themselves from the numerous competitors that existed in Germany at that time. Shortly after beginning this new strategy, Freudenberg's company was already winning awards at international exhibitions.

The next significant step occurred in 1874, when Freudenberg acquired Heintze's shares and became the sole shareholder. To carry out this move, his father-in-law once again played a crucial role, providing financial support. Having gained complete control over the business, he pioneered social benefits for his employees, particularly through the creation of a groundbreaking health insurance plan. In 1887, as our protagonist was beginning to retire, he decided to bring the second generation into the business, handing over two-thirds of the company to them. During this transition, he took the opportunity to establish the company's principles in writing, based on humility, honesty, solid financial foundations, and adaptability to change. Bonds of trust were also a cornerstone, in his view. His successors were able to maintain and expand the business, even after Carl Johann Freudenberg's death in 1898. Today, more than 125 years after the founder's passing, the multinational Freudenberg employs 4.5 billion people and generates 10 million euros in revenue for the 320 members of the seventh generation of the family.