DGAP-Adhoc

Nanogate Acquires Jay Plastics, Its First US Subsidiary, Expects Growth Leap and Establishes Itself as a Global Provider

NANOGATE AG / Key word(s): Investment

05.12.2016 15:14

Disclosure of an inside information according to Article 17 MAR,
transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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Göttelborn, Germany, December 5, 2016. Nanogate AG, a leading international
systems provider for high-tech surfaces and components, is acquiring a
company in the US for the first time, thereby becoming an outstanding
global provider. The Group has today agreed to acquire Jay Industries'
plastics division, Jay Plastics, which is one of the leading US providers
in this segment with a reputation for high-end components and performance
surfaces. Nanogate expects to strengthen its earnings power by 2017
already, based on the two companies' planned synergies and possible new
product projects. Once the transaction has been completed, the Nanogate
Group expects an immediate jump in sales to more than EUR 150 million as
well as direct access to an international market worth billions.

Nanogate is acquiring a majority stake of around 80 % in Jay Plastics, the
plastics division of Jay Industries, Inc., Mansfield, Ohio, USA. The share
purchase agreement has been signed today. The purchase price is in the mid
double-digit million range. Nanogate is expected to pay around 25 % of the
purchase price in shares. The agreement includes performance-based
components as part of a graduated pricing model for acquiring the
outstanding shares. The successful conclusion of the transaction still
requires certain preparatory steps to be taken, such as spinning off the
Jay Plastics division from the former parent company, Jay Industries. The
transaction should be completed at the beginning of 2017.

With the new equity holding, Nanogate is establishing itself as a leading
global specialist for design-oriented high-tech surfaces and components of
very high optical quality. Together with Jay Plastics, the Group can
globally service European and American companies, while at the same time
achieving significant synergies in development, sales and production. The
planned transfer of technology further boosts Nanogate's sales potential in
the US, especially in the area of design surfaces. The transaction also
improves Nanogate's market access to Asian manufacturers. Nanogate
addresses a market with an accessible volume in billions.

Jay Plastics expects to achieve sales for 2016 in the mid double-digit