Acquisition strengthens Feintool's systems competency

As of 1 January 2000, the Lyss-based Feintool Group, the world's leading supplier of fineblanking/metalforming presses and systems, has acquired IMA Automation GmbH and the trading company mhk, Montagekomponenten, Vertriebs-GmbH in Amberg (Germany). In 1999, IMA and mhk achieved sales of approx. DEM 45 million with around 180 employees. In the 1999/2000 financial year, the management of the Feintool Group expects consolidated group earnings to be slightly increased following the integration of the two companies. It was agreed that the sum paid for the acquisition would not be disclosed. This most recent takeover completes the acquisition strategy announced by Feintool International Holding in connection with the IPO in August 1998 and strengthens its systems competency throughout the value-added chain from components manufacturing (fineblanking/ metalforming systems) through fastening (BalTec riveting machines and Mühlemann plastic/metal composites) to automatic assembly. As a result of the takeover of the two German companies, the Board of Feintool International Holding will request shareholders at the Annual General Meeting to be held on 25 January 2000 to approve the creation of conditional capital for a convertible bond.

The acquisition of IMA Automation GmbH and the associated trading company mhk, Montagekomponenten, Vertriebs-GmbH extends the Feintool Group's value-added chain and enhances its core competencies in the areas of automation, assembly and infeed technology. IMA and mhk, which will continue to trade as independent companies, have previously operated primarily in Europe; Feintool's international organisation will increase these companies potential to achieve above-average growth. When the acquisition is taken into account, sales in the current (1999/2000) financial year are expected to reach CHF 390 million to CHF 410 million (compared with CHF 360 million to CHF 380 million before the acquisition). The management of the Feintool Group anticipates that the operating result and net profit will be slightly increased following the consolidation of IMA and mhk.

IMA develops and manufactures sophisticated automatic machines for combining and assembling metal and plastic components, which are notable for their high degree of standardisation and modular design. The company's customers include manufacturers of mobile telephones (45%), electronics components (20%) and domestic appliances (10%), as well as automotive industry suppliers (25%). mhk supplies assembly components to the machinery sector in Europe and will strengthen the BalTec Group in engineering and the distribution of workstation solutions for riveting and fastening applications. The integration of the two companies forms part of the longer-term succession arrangements determined by Sigmund Kumeth, who was responsible for building up the companies over the past 26 years and who will continue as CEO of IMA.

As a result of the takeover of the two German companies, the Board of Feintool International Holding will request shareholders at the Annual General Meeting to be held on 25 January 2000 to approve the creation of CHF 5 million of conditional capital for a convertible bond. The new funds are to be used to finance the recent acquisitions and to facilitate further growth of the Feintool Group.