Gabriel Holding — M&A Activity 2018

Dec 27, 2018

COMPANY ANNOUNCEMENT AND PRESS RELEASE

Gabriel Holding A/S

Gabriel A/S has today acquired the share capital in the fabric manufacturer UAB Baltijos Tekstilė in Lithuania.

Gabriel has today signed a share purchase agreement with the owners of the Lithuanian fabric manufacturer UAB Baltijos Tekstilė thereby taking over 100% of the share capital. The price for the shares is agreed at EUR 4 million.

Gabriel and Baltijos Tekstilė (BTC) have worked together since 1999. During the following years until 2003, the partnership was developed and Gabriel's looms were transferred to BTC in connection with outsourcing of production from Aalborg. Since then BTC has been the main weaving partner in the European production and has produced the majority of the sales materials that are marketed via Gabriel's business unit SampleMaster.

The purchase of the shares in the Lithuanian company will support the Group's growth in both the fabric business and SampleMaster and ensure a continued high reliability of supply and competitiveness.

BTC, which employs about 117 employees, with a turnover in 2017 of EUR 3.9 million of which the majority was realised with Gabriel as the customer. Profit before tax was EUR 0.5 million

Through the acquisition of BTC, the Group is expected to receive an external turnover of around EUR 2 million and a profit contribution of around EUR 0.2 million. The acquisition thus contributes to the company's growth and earnings, but does not change the expectations for the entire financial year 2018/19, for Gabriel Holding A/S, which thus still constitutes a growth in revenue and profit before tax of 10-20%.

Gabriel Holding A/S Hjulmagervej 55 9000 Aalborg, Denmark Phone: +45 9630 3100 Contact: Anders Hedegaard Petersen, CEO