EANS-Adhoc: ElringKlinger AG and Hug sign agreement on majority takeover of Hug Group by 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. --------------------------------------------------------------------------------
06.04.2011
Dettingen/Erms (Germany) / Elsau (Switzerland) April 6, 2011 +++ The ElringKlinger Group is further extending its activities within the area of emissions reduction technology and will acquire a 66.7 % interest in the Swiss Hug Group, based in Elsau, Switzerland. The purchase agreement was signed by the two contracting parties on the evening prior to this announcement.
The core business activities of the Hug Group are centered around the development, engineering and manufacture of exhaust abatement systems for catalytic exhaust aftertreatment as well as diesel particulate filters for stationary and mobile applications. In future, Hug diesel particulate filter systems are to be combined with the ElringKlinger CleanCoat coating material for soot reduction and will be used within the commercial vehicle sector, in off-road vehicles as well as in stationary applications.
In cooperation with ElringKlinger AG, Hug Engineering AG will additionally be looking to supply a wider range of original-equipment customers with exhaust abatement systems tailored to heavy-duty applications (trucks, construction machinery). Against the backdrop of increasingly strict emission standards, the focus will also be on markets in Asia and South America. In view of the fact that the ElringKlinger Group operates 33 sites in all of the world's key markets, Hug will be in a position to press ahead vigorously with its globalization efforts.
In addition to its majority stake in Hug Engineering AG, Elsau, Switzerland, ElringKlinger AG will also acquire a pro rata interest in Hug Filter Systems AG, Elsau, Switzerland, and six international sales companies.
Both parties have agreed not to disclose specific details of the purchase price. In total, it will be within a range of approx. 0.5 times targeted revenue. The Hug Group expects to generate sales revenue of approx. CHF 60 million in the current 2010/11 financial year.
The acquisition plans had initially been announced on 29 March 2011. Closing is currently subject to the approval of the antitrust authorities. Provided that this approval is granted, ElringKlinger anticipates that the agreement can be closed and that the entity can thus be consolidated within the ElringKlinger Group in the course of the second half of 2011 the latest.
end of announcement euro adhoc --------------------------------------------------------------------------------
Contact:
ElringKlinger AG
Investor Relations /Corporate Communications
Stephan Haas
Tel.: +49 (0) 7123 724 137
E.Mail: stephan.haas@elringklinger.com
Branche: Automotive Equipment
ISIN: DE0007856023
WKN: 785602
Index: MDAX, CDAX, Classic All Share, Prime All Share
Börsen: Frankfurt / regulated dealing/prime standard
Berlin / free trade
Düsseldorf / free trade
München / free trade
Stuttgart / regulated dealing