DGAP-Adhoc
ElringKlinger Group acquires US transmission component specialist M&W Manufacturing
ElringKlinger AG / Key word(s): Acquisition
13.02.2015 07:54
Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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Dettingen/Erms (Germany), Warren, Michigan (USA), February 13, 2015 +++
ElringKlinger has acquired US automotive supplier M&W Manufacturing Co.,
Michigan, thereby significantly expanding its market position as a supplier
of spacer plates for automatic transmissions - in North America and
worldwide.
ElringKlinger AG has acquired all interests in the US company M&W
Manufacturing Co. from the former owner family of the business. The
agreement was closed on the evening prior to this announcement. M&W is to
be included in the scope of consolidation of the ElringKlinger Group
retrospectively as of February 1, 2015. The entity's sales and earnings
thus will contribute to ElringKlinger Group sales and earnings for fiscal
2015 for a period spanning 11 months.
The acquisition of M&W is seen as an important milestone in the expansion
of ElringKlinger's Specialty Gaskets division, which generated sales of
approx. EUR 200 million in 2014. The division primarily develops and
produces turbocharger gaskets, high temperature gaskets and components for
exhaust gas recirculation (EGR) and exhaust systems as well as control
plates for automatic and dual-clutch transmissions.
The latest acquisition will allow the division to underpin its regional
presence in North America and its production activities in the US market.
Together with US market leader M&W, ElringKlinger has advanced to become
the premier supplier of transmission spacer plates. In addition to
supplying the North American market, M&W has started to increasingly serve
the Chinese market from its US production site.
ElringKlinger will thus be pursuing opportunities in an additional field of
structural growth. The market has seen significant growth in the proportion
of high-performance automatic and dual-clutch transmissions, prompting more
expansive demand in the coming years for key components such as control
plates for transmission systems. As regards production and process
technology, M&W's manufacturing activities in the field of transmission
spacer plates complement ElringKlinger's screen printing and metal bead
based technology. These technologies can be rolled out rapidly at
production facilities operated by the ElringKlinger Group around the globe.
M&W employs around 100 people at its two company sites at Warren and
Roseville, Michigan. The target for fiscal 2015 is to generate sales
revenue totalling between EUR 33 and 34 million, with a projected operating
margin (adjusted EBIT before purchase price allocation) in high
single-digit figures. The purchase price is approx. 0.8-times the amount of
sales revenues budgeted for 2015 and includes the assumption of financial
liabilities totalling EUR 4.5 million. The parties to the contract have
agreed not to disclose further details relating to the transaction.
ElringKlinger will implement further improvements with regard to costs and
earnings through further automation and mutual support in the field of
development as well as production methods.
The announcement of the acquisition of M&W will be accompanied by a brief
conference call today, February 13, 2015 at 11:00 a.m. CET.
For further information please contact:
ElringKlinger AG
Corporate PR / Investor Relations
Stephan Haas
Max-Eyth-Straße 2
72581 Dettingen
Fon: +49 (0)7123-724-631; +49 (0)170-9246264;
Fax: +49 (0)7123-724-641
E-Mail: stephan.haas@elringklinger.de
13.02.2015 The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
---------------------------------------------------------------------------
Language: English
Company: ElringKlinger AG
Max-Eyth-Straße 2
72581 Dettingen/Erms
Germany
Phone: 071 23 / 724-0
Fax: 071 23 / 724-9006
E-mail: stephan.haas@elringklinger.de
Internet: www.elringklinger.de
ISIN: DE0007856023
WKN: 785602
Indices: MDAX
Listed: Regulated Market in Frankfurt (Prime Standard), Stuttgart;
Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg,
Hanover, Munich
End of Announcement DGAP News-Service
---------------------------------------------------------------------------
ElringKlinger has acquired US automotive supplier M&W Manufacturing Co.,
Michigan, thereby significantly expanding its market position as a supplier
of spacer plates for automatic transmissions - in North America and
worldwide.
ElringKlinger AG has acquired all interests in the US company M&W
Manufacturing Co. from the former owner family of the business. The
agreement was closed on the evening prior to this announcement. M&W is to
be included in the scope of consolidation of the ElringKlinger Group
retrospectively as of February 1, 2015. The entity's sales and earnings
thus will contribute to ElringKlinger Group sales and earnings for fiscal
2015 for a period spanning 11 months.
The acquisition of M&W is seen as an important milestone in the expansion
of ElringKlinger's Specialty Gaskets division, which generated sales of
approx. EUR 200 million in 2014. The division primarily develops and
produces turbocharger gaskets, high temperature gaskets and components for
exhaust gas recirculation (EGR) and exhaust systems as well as control
plates for automatic and dual-clutch transmissions.
The latest acquisition will allow the division to underpin its regional
presence in North America and its production activities in the US market.
Together with US market leader M&W, ElringKlinger has advanced to become
the premier supplier of transmission spacer plates. In addition to
supplying the North American market, M&W has started to increasingly serve
the Chinese market from its US production site.
ElringKlinger will thus be pursuing opportunities in an additional field of
structural growth. The market has seen significant growth in the proportion
of high-performance automatic and dual-clutch transmissions, prompting more
expansive demand in the coming years for key components such as control
plates for transmission systems. As regards production and process
technology, M&W's manufacturing activities in the field of transmission
spacer plates complement ElringKlinger's screen printing and metal bead
based technology. These technologies can be rolled out rapidly at
production facilities operated by the ElringKlinger Group around the globe.
M&W employs around 100 people at its two company sites at Warren and
Roseville, Michigan. The target for fiscal 2015 is to generate sales
revenue totalling between EUR 33 and 34 million, with a projected operating
margin (adjusted EBIT before purchase price allocation) in high
single-digit figures. The purchase price is approx. 0.8-times the amount of
sales revenues budgeted for 2015 and includes the assumption of financial
liabilities totalling EUR 4.5 million. The parties to the contract have
agreed not to disclose further details relating to the transaction.
ElringKlinger will implement further improvements with regard to costs and
earnings through further automation and mutual support in the field of
development as well as production methods.
The announcement of the acquisition of M&W will be accompanied by a brief
conference call today, February 13, 2015 at 11:00 a.m. CET.
For further information please contact:
ElringKlinger AG
Corporate PR / Investor Relations
Stephan Haas
Max-Eyth-Straße 2
72581 Dettingen
Fon: +49 (0)7123-724-631; +49 (0)170-9246264;
Fax: +49 (0)7123-724-641
E-Mail: stephan.haas@elringklinger.de
13.02.2015 The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
---------------------------------------------------------------------------
Language: English
Company: ElringKlinger AG
Max-Eyth-Straße 2
72581 Dettingen/Erms
Germany
Phone: 071 23 / 724-0
Fax: 071 23 / 724-9006
E-mail: stephan.haas@elringklinger.de
Internet: www.elringklinger.de
ISIN: DE0007856023
WKN: 785602
Indices: MDAX
Listed: Regulated Market in Frankfurt (Prime Standard), Stuttgart;
Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg,
Hanover, Munich
End of Announcement DGAP News-Service
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