Funkwerk AG — M&A Activity 2012

Sep 18, 2012

News Details

Ad-hoc | 18 September 2012 16:05

Funkwerk AG sells Funkwerk Dabendorf GmbH

Funkwerk AG / Key word(s): Disposal

18.09.2012 16:05

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Funkwerk AG sells Funkwerk Dabendorf GmbH

Further strategic milestone reached in restructuring

Sales and earnings forecast for 2012 revised

Kölleda, 17 September 2012 - Funkwerk AG is set to sell Funkwerk Dabendorf
GmbH, Zossen, effective on 1 October 2012. The subsidiary consolidates the
main activities of the group's Automotive Communication (AC) segment.
Funkwerk Dabendorf will be taken over by the novero group, Düsseldorf,
which specialises on aspects such as professional mobile radio equipment in
the automobile sector.

Based on this sale, the Executive Board has now revised its forecast for
the 2012 financial year and adjusted its consolidated sales figure to
around EUR 143m to EUR 148m. Operating earnings before restructuring and
impairment costs are expected to be marginally negative ranging in the low
single-digit millions.

The share sale agreement signed today specifies a total purchase price with
a portion due immediately and a performance-linked remainder spread over
the next few years, from 2013 to 2016, ranging in the low single-digit
millions. The sale does not extend to the facility site in Dabendorf/Zossen
nor the 100 per cent share held by the company in Funkwerk eurotelematik
GmbH, Ulm. Under the agreement, both assets will be removed prior to
execution of the contract and transferred to Funkwerk AG, Kölleda.
Execution is subject to the usual reserve of conditions precedent and
requires the approval of the banking consortium of Funkwerk AG. The
Executive Board expects all conditions precedent to occur and approval by
the banking consortium to be given by the end of 2012.

With the sale of Funkwerk Dabendorf GmbH, which generated sales of around
EUR 19m and operating earnings of around EUR -3m in 2011, Funkwerk AG
consistently continues its strategy of focusing on Traffic & Control
Communication and Security Communication as its core segments. The step
also reduces the group's business risk and helps to stabilise its financial
situation.

Due to the disposal of Funkwerk Dabendorf GmbH, the sales forecast in the
group has been adjusted to around EUR 143m to EUR 148m in the current 2012
financial year. The group's operating earnings before restructuring and
impairment costs are expected to range in the lower single-digit millions.

For further information please contact:

Funkwerk AG
Im Funkwerk 5
99625 Kölleda/Thuringia
Germany
Jörg Reichenbach
Investor Relations
Phone: 0 36 35/6 00 -3 46
Fax: 0 36 35/6 00 -5 07
reichenbach@funkwerk.com

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Language: English
Company: Funkwerk AG
Im Funkwerk 5
99625 Kölleda
Germany
Phone: +49 (0)3635 600 0
Fax: +49 (0)3635 600 507
E-mail: info@funkwerk.com
Internet: www.funkwerk.com
ISIN: DE0005753149
WKN: 575314
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, Hamburg, München, Stuttgart

End of Announcement DGAP News-Service

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