euro adhoc: KarstadtQuelle AG
Mergers - Acquisitions - Takeovers /
KarstadtQuelle acquires Home Shopping Europe - Steady sales growth and
double-digit EBITDA margin planned
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
09.05.2007
Essen, Germany May 9, 2007. KarstadtQuelle AG, Essen, is acquiring the shopping channel Home Shopping Europe GmbH & Co. KG (HSE24). The corresponding contractual agreement was signed today with the previous owner, IAC/InterActiveCorp, New York/USA.
Through this acquisition, the KarstadtQuelle Mail Order Group Primondo is resolutely setting forth its new strategic orientation. Teleshopping optimally extends the multichannel offer from Quelle and makes Quelle the leading mulitchannel provider in Germany. The teleshopping market in Germany generates sustainable strong growth. HSE24 has already taken advantage of this trend with great success.
With HSE24, Primondo is targeting a steady growth in sales as well as a double-digit EBITDA margin. In addition, Primodo plans to extend the presence of home shopping throughout Europe in the coming years. The markets in Central and Eastern Europe, and Russia in particular, are especially attractive.
The purchase price for the acquisition of HSE24 will be raised in the form of KarstadtQuelle Treasury shares. For the first time, KarstadtQuelle is making use of its significantly increased share price for acquisitions.
Initially, shares valued at EUR 145 million will be provided for the purchase price. The final number of shares provided will be determined at the closing of the transaction.
A possible further payment in the amount of EUR 55 million after three years is linked to the KarstadtQuelle share price. Based on the share price of the stock at closing, the additional payment will no longer apply if a specific target value is achieved within three years. On the basis of the current share price, the target share price lies at c. EUR 38.60; the exact target share price will be determined at closing as well.
The agreed payment of the purchase price in the form of KarstadtQuelle shares shows the strong confidence of both contract partners in the further development of KarstadtQuelle shares. No additional net financial debt will arise for the KarstadtQuelle Group as a result of the takeover. The Group still possesses a high level of strategic leeway.
HSE, located in Ismaning near Munich, began in 1995 as the first shopping channel in Germany and has experienced considerable growth since that time. In 2006, net sales of EUR 286 million were achieved with around 1.3 million customers. HSE24 successfully combines TV and Internet shopping under one roof. The shopping channel reaches over 39 million households in Germany, Austria and Switzerland via cable and satellite.
The transaction is subject to approval by the anti-trust authorities.
The Board of Management
end of announcement euro adhoc 09.05.2007 08:02:44
Further inquiry note:
Karstadt Quelle AG
Investor Relations
Tel. +49(0)201 727-9816
Fax: +49(0)201 727-9854
E-Mail: investors@karstadtquelle.com
Branche: Retail
ISIN: DE0006275001
WKN: 627500
Index: CDAX, Classic All Share, HDAX, MDAX, Midcap Market Index,
Prime All Share
Börsen: Frankfurter Wertpapierbörse / official dealing/prime standard
Börse Berlin-Bremen / official dealing
Hamburger Wertpapierbörse / official dealing
Baden-Württembergische Wertpapierbörse / official dealing
Börse Düsseldorf / official dealing
Niedersächsische Börse zu Hannover / official dealing
Bayerische Börse / official dealing