PKC Group Plc Company Announcement 1 July 2015 05.15 pm
PKC’s acquisition of Groclin’s Wiring and Control business is completed and PKC updates the revenue outlook as a result of completion of the acquisition
PKC Group announced on 13 February 2015 that it had signed a contract to buy the rolling stock electrical distribution system business (Wiring & Controls business) of Groclin S.A. Group, a company listed on the Warsaw stock exchange. The deal includes Kabel-Technik-Polska Sp. z o. o. (‘KTP’) operating in Poland, which at the time of the closing will own the entire Wiring & Controls business of Groclin S.A. Group. The requirements of closing have been fulfilled and the closing will become effective and ownership and control will transfer on 1 July 2015.
The Wiring & Controls business develops and manufactures electrical cabinets, powerpacks and electrical distribution systems for rolling stock manufacturers. The clientele also includes the on/off highway commercial vehicle, energy and materials handling industry. The customers are leading companies in their field and mainly operate globally. Wiring & Controls business revenue in 2014 totalled some EUR 56 million, normalised EBITDA % totalled some 7%, and number of personnel at the end of 2014 totalled about 2,000.
The net debt free purchase price is EUR 50 million. The acquisition takes place via a new company, in which PKC Group has an 80% holding and Wiring & Controls business’ management has a 20% holding. PKC Group and minority shareholders have agreed on a call option structure, within the framework of which PKC Group will acquire the minority shareholders’ shares not before than two years from the closing of the deal.
PKC Group’s updated outlook for 2015
PKC Group estimates that with prevailing exchange rates 2015 revenue will be higher than previous year level, and that comparable EBITDA will be higher than in 2014. In 2014, PKC’s revenue was EUR 829.5 million and comparable EBITDA before non-recurring items was EUR 48.6 million. Revenue and EBITDA estimates are based on current business structure.
Earlier announced outlook for 2015
PKC Group estimates that with prevailing exchange rates 2015 revenue will be close to previous year level, and that comparable EBITDA will be higher than in 2014. In 2014, PKC’s revenue was EUR 829.5 million and comparable EBITDA before non-recurring items was EUR 48.6 million. Revenue and EBITDA estimates are based on current business structure.
PKC Group has reclassified certain financial items and operating expenses as of the beginning of 2015. The changes are minor and comparison periods have been adjusted accordingly.
PKC Group Plc
Board of Directors
Matti Hyytiäinen
President & CEO
For more information, please contact:
Juha Torniainen, CFO, PKC Group Plc, tel. +358 (0)40 570 8871
Distribution
Nasdaq Helsinki
Main media
www.pkcgroup.com
PKC Group is a global partner, designing, manufacturing and integrating electrical distribution systems, electronics and related architecture components for the commercial vehicle industry, rolling stock manufacturers and other selected segments. The Group has production facilities in Brazil, China, Estonia, Finland, Germany, Lithuania, Mexico, Poland, Russia, Serbia and the USA. The Group's revenue in 2014 totalled EUR 829.5 million. PKC Group Plc is listed on Nasdaq Helsinki.