GEA Group AG

M&A Activity • Dec 20, 2010

News Details

Media | 20 December 2010 13:37

GEA Group Aktiengesellschaft: GEA acquires Convenience Food Systems (CFS)

GEA Group Aktiengesellschaft / Key word(s): Enterprise/
GEA Group Aktiengesellschaft: GEA acquires Convenience Food Systems
(CFS)

20.12.2010 / 13:37

A new, 6th, GEA segment is created following the expansion of the product
portfolio

Bochum, December 20, 2010 - GEA Group Aktiengesellschaft expands the share
of food process technology in its portfolio. Acquiring the company
Convenience Food Systems (CFS) from funds managed by AEA Investors LP, GEA
has added to its group one of the most multi-faceted suppliers of secondary
food processing and packaging machinery (meat, fish, cheese). The company,
which is headquartered in Bakel, NL, and has some 2000 employees expects a
turnover of about EUR 400 M in this financial year. The transaction remains
subject to approval by the antitrust authorities and is expected to be
consummated during the first half of 2011.

'This acquisition follows our declared strategy to expand the food process
technology activities of GEA Group horizontally. We are taking our
portfolio another big step forward towards the less cyclical food industry.
In doing so, we can leverage the brand value of GEA by offering our
customers ever more solutions along their entire process chain from one
single source.' declared Jürg Oleas, CEO of GEA Group.

'In the medium term, GEA sees potential to considerably boost profits at
CFS in cooperation with the existing management and to realise synergies
with existing GEA businesses.' remarks Niels Graugaard, member of the
executive board and COO of GEA.

'The market segment of animal proteins is one of the fastest growing within
the entire food industry. As part of the GEA Group we will have the chance
to develop new customers and find access to new markets. GEA offers ideal
growth conditions for an innovative and quality focused company such as
CFS.' added Brian McCluskie, CEO of CFS.

The purchase price is based on an enterprise value of about EUR 435 M and
will be financed with existing credit facilities. The acquisition of CFS
will be accretive to cash flow and EPS of GEA Group and suits the group
target of a mid-term EBIT-margin of 12%.

GEA Group AG
GEA Group Aktiengesellschaft is one of the largest system providers for
food and energy processes with about EUR 4.4 billion in 2009 revenue. As an
internationally operating technology group, the company focuses on process
technology and components for demanding production processes in various end
markets. The group gains about 70 percent of its revenue in the long-term
growing food and energy industries. The company's workforce comprised over
20,000 employees worldwide as of September 30, 2010. GEA Group is a market
and technology leader in its business areas. The company is listed in the
MDAX index (G1A, WKN 660 200).

AEA Investors LP
AEA was founded in 1968 by S.G. Warburg & Co. and the Rockefeller, Mellon,
and Harriman family interests as a private investment vehicle for a select
group of family offices. Today, its investors include a global group of
individuals, family groups and institutions and it focuses its investments
on four industry sectors: value-added industrial products, specialty
chemicals, consumer products and services. AEA has offices in London,
Munich, New York, Hong Kong and Shanghai.

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End of Media Release

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Language: English
Company: GEA Group Aktiengesellschaft
Dorstener Straße 484
44809 Bochum
Deutschland
Phone: +49 (0)234 980-0
Fax: +49 (0)234 980-1004
E-mail: ir@geagroup.com
Internet: www.geagroup.com
ISIN: DE0006602006
WKN: 660200
Listed: Regulierter Markt in Berlin, Düsseldorf, Frankfurt (Prime
Standard), Hamburg, München; Freiverkehr in Hannover,
Stuttgart

End of News DGAP-Media

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