EANS-Adhoc: ElringKlinger AG and Freudenberg Group sign agreement for sale of cylinder-head and exhaust system gasket business to ElringKlinger
ad-hoc disclosure pursuant to section 15 of the WpHG transmitted by euro adhoc with the aim of a Europe-wide distribution. The issuer is solely responsible for the content of this announcement.
Company Information
30.09.2010
Dettingen/Erms, Weinheim (Germany), September 30, 2010 +++ The Freudenberg Group, Weinheim, has agreed to sell its business within the area of static metal gaskets to automotive supplier ElringKlinger AG, Dettingen/Erms. The Static Metal Gaskets division operated by the Freudenberg Group includes business activities centered around cylinder-head and exhaust system gaskets. The purchase agreement was signed this morning by both parties to the contract.
Alongside the Freudenberg subsidiary Burgmann Automotive GmbH, Gelting, Germany, ElringKlinger will also take over a part of Freudenberg-Meillor S.A.S., Nantiat, France, as well as Oigra Meillor s.r.l., Turin, Italy.
Following the official authorization by the antitrust authorities and the approval of staff representatives at the Nantiat site in France as regards the completion of the planned takeover, the purchase agreement was released for notarization. The planned acquisition had been announced on July 12, 2010. Both parties have agreed not to disclose specific details of the purchase price. It will be within a range of 0.6 to 0.8 times expected revenue for 2011.
The transaction is to be closed at the end of the year, as a result of which it will come into legal effect as of January 1, 2011, which will also be the date of inclusion in the consolidated group of ElringKlinger.
In acquiring the static-metal-gaskets business from the Freudenberg Group, ElringKlinger intends to expand its international position in the area of cylinder-head gaskets and highly heat-resistant specialty gaskets for engines and exhaust systems. In the area of specialty gaskets, the overall portfolio will be extended to include several additional products, e.g. within the turbocharger and exhaust recirculation segment. At the same time, the company's market position will be strengthened significantly in France and Italy in particular. In fiscal 2011 as a whole, the acquisition is expected to contribute around EUR 49 million to Group sales. ElringKlinger anticipates that the operating margin can be brought closer to that of its own Group level by 2012.
The ElringKlinger Group's cylinder-head and specialty gaskets divisions generated revenue of EUR 150 million as part of original equipment sales to automobile manufacturers in 2009, corresponding to more than one quarter of total Group revenue.
end of announcement euro adhoc
Further inquiry note:
For further information, please contact:
ElringKlinger AG Investor Relations / PR
Max-Eyth-Straße 2, 72581 Dettingen/Erms
Phone: +49 (0)7123-724-137
Fax: +49 (0)7123-724-641
E-mail: stephan.haas@elringklinger.de
Branche: Automotive Equipment
ISIN: DE0007856023
WKN: 785602
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