Adval Tech Holding AG

M&A Activity • Jul 12, 2016

News Details

Ad-hoc | 12 July 2016 07:00

Adval Tech sells its Molds segment and advances its focusing strategy in the Components segment

Adval Tech sells its Molds segment and advances its focusing strategy in the Components segment
Niederwangen, July 12, 2016, 7:00 a.m. ‒ Adval Tech has entered into an agreement with Barnes Group Inc. for the sale of the shares in the Molds segment (FOBOHA). Subject to the approval of the relevant authorities, the transaction should be completed during the third quarter of 2016. Adval Tech will use the proceeds primarily to reduce debt.
The Molds segment, which markets its products under the Adval Tech FOBOHA brand, develops and produces high-performance molds for the production of plastic components. In addition, the segment has become established as a supplier of turnkey production systems in recent years. The Molds segment (FOBOHA) operates locations in Europe, the United States and Asia; at the end of 2015 it employed a total workforce of 371. Founded in 1857, Barnes Group Inc. (NYSE:B) is an international industrial and aerospace manufacturer and service provider, serving a wide range of end markets and customers. The highly engineered products, differentiated industrial technologies, and innovative solutions delivered by Barnes Group are used in far-reaching applications that provide transportation, manufacturing, healthcare products, and technology to the world. In financial year 2015 the Barnes Group Inc. posted sales of USD 1,194 million and employed approx. 4,700 people at over 60 locations worldwide. The purchase agreement between Adval Tech and Barnes Group includes the Molds shares in Europe, the United States and Asia. The new owner plans to integrate the Molds segment as an ideal complement to its strategic Molding Solutions (MS) division. The price of the acquisition is CHF 133 million on a debt and cash free basis. Subject to approval by the relevant authorities, the sale is expected to be completed during the third quarter of 2016. Adval Tech continues to implement focused growth strategy in Components segment With the new Group structure and a clear focus on the Components segment, Adval Tech intends in future to concentrate its efforts on attractive growth opportunities in the global automotive market and on related applications in other markets. Adval Tech will use the proceeds of the sale of the Molds segment (FOBOHA) primarily to reduce debt. Adval Tech is well-positioned to sustainably generate value in future. Its other top priorities for the 2016 financial year are the integration of Fischer IMF, ramping up the new plant in Mexico and successfully executing new orders.
Contact Markus Reber, CFO, phone +41 31 980 82 70; markus.reber@advaltech.com Background information about the Adval Tech Group Adding value through innovation – that’s what Adval Tech stands for. Adval Tech is the partner of choice – for high-volume components manufactured in metal and plastic. The Group focuses on the automotive market and on related applications. Adval Tech covers the entire value chain as a one-stop-shop, from product development to prototyping, to mold and tool development, and through to component production and assembly. Agenda End of August 2016: Announcement of semi-annual results 2016 Except for the historical information contained herein, the statements in this media release are forward-looking statements that involve risks and uncertainties.