BayWa AG / Key word(s): Disposal/Joint Venture 09.11.2011 11:57 Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- BayWa to divest its DIY and garden centres business BayWa is to hive off its DIY & Garden Centres Business Unit to form a new company. The new company will be established under the name of BayWa Bau- & Gartenmärkte GmbH & Co. KG, with headquarters in Munich. Semer Beteiligungs-gesellschaft mbH will initially hold a stake of 50 percent which will be gradually raised to 100 percent. The purchase price will come to EUR 28 million in total, corresponding to the book value of equity, and will be paid in several stages. The new company will become operational on 1 January 2012 and will be incorporated into a strategic partnership with the Hellweg Group. Hellweg, which is a well-known DIY store operator, belongs to the Semer family, among other assets. The spin-off represents an important entrepreneurial step for BayWa. Owing to its lack of critical mass and the fierce competition in the DIY store sector, BayWa's DIY and garden centres business was unable to earn the targeted cost of capital. Incorporating these operations into the new company will mean that the DIY and garden centres business is recognised at equity within the Group. 56 stores of BayWa, which will continue to operate under the BayWa brand, will be transferred to the new company. The real estate will be owned by BayWa AG, as before, and will be let to BayWa Bau- & Gartenmärkte GmbH & Co. KG. Anti-trust approval for the transaction, which was approved by BayWa's Supervisory Board today, is still pending. At the same time, the joint venture solution has created future prospects for the DIY and garden centres business. Combined competences in the market, synergy effects and specialised retail trade structures will strengthen the new company for competition and promote growth, thereby contributing to securing jobs. The Hellweg Group, a well-known DIY operator, will be contributing its competence in the retail trade to the company and is responsible for business operations. Through this measure BayWa will effectively be divesting this area of retail business in the long run. BayWa Aktiengesellschaft, ArabellastraÃe 4, D-81925 Munich, www.baywa.de Sec. code no. 519406 // ISIN DE0005194062; sec. code no. 519400 // ISIN DE0005194005 Contact: Marion Danneboom, BayWa AG, Head of PR/Corporate Communication, tel. +49 (0)89/92 22-36 80, Fax +49 (0)89/92 22-36 98, e-mail: marion.danneboom@baywa.de 09.11.2011 DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: BayWa AG ArabellastraÃe 4 81925 München Germany Phone: 089/ 9222-3691 Fax: 089/ 9222-3698 E-mail: marion.danneboom@baywa.de Internet: www.baywa.de ISIN: DE0005194062, DE0005194005, WKN: 519406, 519400, Indices: MDAX Listed: Regulierter Markt in Frankfurt (Prime Standard), München; Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, Stuttgart End of Announcement DGAP News-Service ---------------------------------------------------------------------------
DGAP-Adhoc: BayWa to divest its DIY and garden centres business
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