EANS-News: Balda AG
Balda forcefully extends its presence in the USA through
acquisition of HK Plastics Engineering, Inc.
29.12.2012 – 10:37
-------------------------------------------------------------------------------- Corporate news transmitted by euro adhoc. The issuer/originator is solely responsible for the content of this announcement. -------------------------------------------------------------------------------- Subtitle: Next step in the buy-and-build strategy for the medical segment Mergers - Acquisitions - Takeovers Bad Oeynhausen, December 29, 2012 (euro adhoc) - Balda, a producer of high-quality plastic products for the medical and electronics industries, has agreed the purchase of 100 percent of the shares of HK Plastics Engineering, Inc., Oceanside, California, effective as of December 31, 2012. Through this acquisition, the group forcefully extends its presence in the strategically-important US market. Recently, Balda had announced the acquisition of California-based plastics producer C. Brewer Company, Anaheim, also effective as of December 31, 2012. The two acquisitions particularly strengthen Balda's medical business, in line with the buy-and-build strategy laid out for this business segment. About HK Plastics Engineering, Inc. HK Plastics Engineering, Inc. is a full-service supplier of injection-molded plastics and the associated molds. Its services range from design and development to tool manufacturing and the molding process up to mechanical installations. The second-generation family company, which was founded in 1974, specializes in supplying highly-regarded customers in the field of medical technology, and is therefore able to fulfill the most stringent requirements in both its products and services. HK Plastics Engineering, Inc. operates a production facility at its headquarters in Oceanside and employs around 80 people. The company expects revenues of around USD 15 million (approx. EUR 11.5 million) and positive operating earnings (EBITDA) for the calendar year 2012. More than 80 percent of its revenues come from medical customers. Further details about the transaction The purchase price amounts to a higher single-digit range (EUR million). It will fully be financed with the existing liquidity of the Balda Group. The sellers are the families of the founders. The purchase price is based on a multiple of less than 7 times the expected adjusted EBITDA in 2012. M&A International Inc. with its partner firms Angermann M&A International GmbH and Masi Ltd. acted as M&A advisor for Balda in this transaction. Dominik Müser, CEO of Balda AG: "HK Plastics Engineering is mainly focused on the diagnostics markets and therefore it matches perfectly the medical business of our acquisition C. Brewer Co. that has a clear focus on medical devices. With the purchase of the two injection-molded plastics specialists Balda has now a strong footprint in the important US market." About Balda Balda is a producer of high-quality plastics solutions for the medical technology and electronics markets. The company provides superior engineering services, products of the highest quality as well as a fast, flexible and tailored service for its customers. The Balda Medical segment in Bad Oeynhausen develops and produces high-quality plastics solutions for the medical technology, pharmaceutical and diagnostics markets. The Balda Group generated revenues of EUR 24.7 million in the short financial year 2012 (1 January to 30 June 2012) compared to EUR 66.3 million in calendar year 2011. The Balda share (ISIN: DE0005215107) is listed on the SDAX segment of Deutsche Börse. www.balda.de; www.balda-medical.de Further inquiry note: Frank Elsner Frank Elsner Kommunikation für Unternehmen GmbH Tel.: +49 - 54 04 - 91 92 0 Fax: +49 - 54 04 - 91 92 29 Mail:{office@elsner-kommunikation.de}[HYPERLINK: mailto:office@elsner-kommunikation.de] end of announcement euro adhoc -------------------------------------------------------------------------------- company: Balda AG Bergkirchener Str. 228 D-32549 Bad Oeynhausen phone: +49 (0) 5734 9 22-0 FAX: +49 (0) 5734 922-2747 mail: info@balda.de WWW: http://www.balda.de sector: Semiconductors & active components ISIN: DE0005215107 indexes: CDAX, Prime All Share stockmarkets: free trade: Berlin, München, Hamburg, Düsseldorf, Stuttgart, regulated dealing/prime standard: Frankfurt language: English