ElringKlinger lifts stake in Marusan Corporation to 50%
Dettingen/Erms (euro adhoc) -
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merger, acquisition and takeover
Dettingen/Erms (Germany)/Tokyo (Japan), May 2, 2008 +++ The ElringKlinger Group has increased its stake in Japanese gasketing manufacturer Marusan Corporation, Tokyo, from 10% to 50%. ElringKlinger plans to unlock further sales growth with Japanese vehicle manufacturers and strengthen its position in the Asian market.
Negotiations were finalized and the share purchase agreement was signed. The deal will be effective immediately. Both parties also concluded a joint venture agreement. The existing company ElringKlinger Marusan Corporation will be merged with the newly-formed Joint Venture. The company will be registered under the name of ElringKlinger Marusan Corporation.
The Marusan Corporation and its three affiliates produce cylinder head gaskets, specialty gaskets and thermal shielding modules for the automobile and truck industry. The company has targeted sales for 2008 of approx. EUR 45 million. The purchase price for the 40% stake is in the range of 0.3 - 0.4 times sales.
Long standing relationship In March 2004, ElringKlinger AG and Marusan Corporation founded the ElringKlinger Marusan Corporation, a joint venture that has been focusing on R&D and sales for the Japanese and other Asian markets. The successful acquisition of new projects has led to a point when both companies decided to extend their relationship to the manufacturing area.
Next step in Asian build-up After having expanded its production sites in China as well as Korea and having built up a plant in Ranjangaon, India, ElringKlinger is in the process of expanding its business in Asia further and aims at strengthening its ties with the Japanese original equipment manufacturers in the Japanese market and abroad. Within this context ElringKlinger is also broadening its product range offered in the Asian markets. Going forward, the newly formed joint venture, besides R&D and sales, will provide a production hub for supplying Japanese clients from within the Japanese market.
end of announcement euro adhoc
Further inquiry note:
Stephan Haas
Investor Relations Manager
Telefon: +49(0)7123 724-137
E-Mail: stephan.haas@elringklinger.de
Branche: Automotive Equipment
ISIN: DE0007856023
WKN: 785602
Index: SDAX, CDAX, Classic All Share, Prime All Share
Börsen: Börse Frankfurt / regulated dealing/prime standard
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