DGAP-News: TWINTEC AG / Key word(s): Acquisition
TWINTEC AG: Strategical Milestone: Twintec AG grows to reach new
dimension by acquiring Kontec
28.09.2015 / 11:21
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Press release
Strategical Milestone: Twintec AG grows to reach new dimension by acquiring
Kontec
- Substantial enhancement of Twintec's strategic positioning in the OEM
market
- Kontec GmbH is one of Germany's top providers of OEM development
services for engines and exhaust gas after-treatment
- In 2016, doubling of revenue and EBITDA over 2014 figures expected
- Purchase price of 7 million shares for complete acquisition
Königswinter, 28 September 2015
Twintec AG (WKN A0LSAT), a leading provider of exhaust gas after-treatment
products, today announced the acquisition of Kontec GmbH effective 30
September 2015. The binding purchase agreement was signed, and the
transaction is expected to be completed early in the fourth quarter of
2015. The economic transfer will take place effective 1 October 2015. The
acquisition is a significant strategic and economic milestone for Twintec
in connection with its envisaged growth in the OEM business over the next
years. Kontec GmbH is one of Germany's top providers of OEM development
services for engines and exhaust gas after-treatment. At Twintec, the
acquisition will result in a considerable expansion of its OEM business,
which is expected to see a surge in growth in the next few years. Twintec
expects the acquisition to boost revenue to EUR 55 to 60 million and push
up EBITDA to around EUR 3.5 million in the next financial year. Both
figures would approximately represent a doubling of these key financials
compared with the 2014 financial year. The purchase price for the complete
acquisition of Kontec amounts to 7 million shares created by way of a
capital increase in return for contributions in kind. Kontec founder and
managing director Klaus Bänsch will be appointed to the Management Board of
Twintec AG effective 1 October 2015 and assume the position of Chief
Technical Officer (CTO). In return Armin Rosbach will resign as Chief
Financial Officer (CFO).
Kontec develops, designs, simulates and validates engines and exhaust gas
after-treatment systems for leading German OEMs. In the past, the company
has repeatedly implemented successful projects for customers together with
Twintec. After joining forces with Twintec, Kontec is now in the position
to market complete exhaust gas after-treatment systems, such as Twintec's
BNOx system for reducing nitrogen oxide emissions in the low temperature
range, to OEM customers. Twintec/Kontec will therefore become the top
supplier of and service provider for OEM exhaust gas after-treatment
systems. With more than 450 highly qualified employees in Europe, the
company now has the critical mass for long-term success in the OEM
business. In 2014, Kontec GmbH generated revenue of EUR 34 million and
EBITDA of EUR 1.7 million. The acquisition puts Twintec in a perfect
position to benefit from the expected surge in growth in the OEM business
stemming from the stricter laws taking effect starting in 2018. Twintec has
already signed agreements with several renowned manufacturers that are
expected to boost revenue substantially in the coming years. In addition,
the Twintec technology is currently in the development phase at several
manufacturers prior to a release for series production.
Besides strategic synergies, the acquisition unlocks considerable potential
on the cost side as well. From 2016 onward, costs are expected to be
reduced by around EUR 1.5 million per year. Combining research and
development efforts will result in capital expenditure savings of some EUR
0.5 million per year. Taken together, this is expected to increase free
cash flow by EUR 2.0 million. Starting in 2017, the additional business
opportunities provided by the acquisition will also generate further
momentum for growth. In addition to achieving organic growth, Twintec also
plans to expand further by making acquisitions. The company has a good
track record in this regard. Baumot AG, which was acquired in 2014, has
contributed to increasing revenue, lowering costs, expanding the company's
technology portfolio and improving access to international markets.
Swiss-based Baumot AG was integrated into the Twintec Group very
successfully in 2014.
About Twintec:
Twintec is a leading provider of products for the after-treatment of
exhaust gases, such as highly efficient SCR systems for low temperature
applications reducing nitrogen oxide emissions as well as active and
passive diesel particulate filters, both for fitting at manufacturers and
for retrofitting on existing vehicles. The solutions are used for various
applications, including in agricultural machines, construction equipment,
light and heavy-duty utility vehicles and passenger cars. Twintec AG is a
listed holding company with four subsidiaries and over 450 highly qualified
employees. Kontec GmbH is together with its subsidiary DIF (Die
Ideenfabrik) GmbH the OEM development arm of the company, providing top
OEMs with development, design, simulation and validation services for
low-emissions engines and exhaust gas after-treatment systems. Through its
subsidiary Interkat GmbH, Twintec also provides catalytic coating services
for various other industrial applications. The subsidiaries Baumot AG and
Twintec Technologie GmbH serve the emissions technology market with
retrofitting and aftermarket solutions along with related services.
Twintec AG's shares are listed in the Entry Standard segment of the
Frankfurt Stock Exchange.
Contact for enquiries:
edicto GmbH
Dr. Sönke Knop / Werner Rüppel
Eschersheimer Landstrasse 42
D - 60322 Frankfurt/Main, Germany
Phone: +49 (0) 69/ 90 55 05 51
E-mail: twintec@edicto.de
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28.09.2015 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
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Language: English
Company: TWINTEC AG
Eduard-Rhein-StraÃe 21 - 23
53639 Königswinter
Germany
Phone: +49 (0)2244 . 91 80 57
Fax: +49 (0)2244 . 91 83 819
E-mail: IR@twintec.de
Internet: www.twintec.de
ISIN: DE000A0LSAT7
WKN: A0LSAT
Listed: Regulated Unofficial Market in Berlin, Dusseldorf,
Hamburg, Munich, Stuttgart; Open Market (Entry Standard)
in Frankfurt
End of News DGAP News Service
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397901 28.09.2015
DGAP-News: TWINTEC AG: Strategical Milestone: Twintec AG grows to reach new dimension by acquiring Kontec
| Source: EQS Group AG