PKC Group Plc Company Announcement 24 November 2016 8:30 am
PKC Group to divest some light vehicle business and associated assets in North America
PKC Group sells part of its non-core light vehicle business in North America. The divestment will encompass separable and identifiable light vehicle product lines which 2017 estimated revenue is approximately EUR 50 million. Furthermore, the product lines employ net assets of about EUR 10 million. The divestment also includes the related employees and building leases. The divestment is expected to be completed during the fourth quarter of 2016 with a transaction value of close to net assets at closing (currently estimated to be about EUR 10 million and which are subject to standard transaction closing adjustments). The divestment is expected not have significant impact to PKC Group’s financial result.
Matti Hyytiäinen (PKC Group, President & CEO):
The divestment of these product lines enables PKC Group to continue to focus on its core businesses of commercial vehicles, rolling stock, recreational products and other selected segments where the high mix and low volume nature of business is more aligned with PKC Group’s core competencies and long term financial targets. Besides releasing some cash from the assets the divestment also frees up operational and managerial resources to continue to execute PKC Group’s growth strategy
PKC Group Plc
Matti Hyytiäinen
President & CEO
Further information: between 8.30-12 am Finnish time
Matti Hyytiäinen, President & CEO, PKC Group Plc, Tel. +852 5507 8826
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 from continuing operations in 2015 totalled EUR 847 million. PKC Group Plc is listed on Nasdaq Helsinki.