PKC Group Plc Company Announcement 3 May 2016 9.00 am
PKC Group takes the next step in developing its Electronics business
PKC has signed an agreement to start negotiations on creating a joint venture (JV) with a company specialized on electronics manufacturing. The company has multiple manufacturing locations in Asian countries. The purpose of this agreement is to combine both companies’ electronics businesses and operations.
The contract party has long history of serving multi-national corporations especially in medical device segment. PKC’s Electronics business has proven track record of serving customers in industrial, telecommunication and medical device segments.
Complimentary knowhow of the parties creates solid foundation for the future JV. The contract party has strong capabilities in manufacturing whereas PKC’s Electronics business has excellent engineering knowhow.
PKC Group CEO Matti Hyytiäinen: We are glad to have this opportunity to further develop our Electronics business. This new entity will have much better ability to serve its customers with broader offering and presence in Asia and Europe. The bigger size will also bring improved competiveness which enables serving customers growing needs. PKC will remain as a long term shareholder in the entity but our partner will have the leading role and majority of the shares. We are confident that this arrangement will be positive to customers, employees and shareholders.
The establishment of the joint venture is subject to e.g. negotiating the definitive agreements and authority approvals. The finalisation is targeted to take place in the first quarter of year 2017. As of January-March 2016 interim statement PKC’s Electronics business will be classified as a non-current asset held for sale and reported as discontinued operations. In the future PKC Group will have only one business segment that also includes the Group functions and other items. The classification will have an impact on PKC’s outlook on revenue and comparable EBITDA for the year 2016. PKC will update its outlook for 2016 in January-March 2016 interim statement which is published on 4 May, 2016.
PKC Group Plc
Board of Directors
Matti Hyytiäinen
President & CEO
For additional information.
Matti Hyytiäinen, President & CEO, PKC Group Plc, tel. +358 400 710968
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 2015 totalled EUR 908.0 million. PKC Group Plc is listed on Nasdaq Helsinki.