Kme Group

M&A Activity • Jan 28, 2019

Informazione Regolamentata n. 0240-2-2019		Data/Ora Ricezione 28 Gennaio 2019 08:10:14	MTA
Societa'	:	INTEK GROUP
Identificativo Informazione Regolamentata	:	113284
Nome utilizzatore	:	SMIN02 - De Vitis
Tipologia	:	2.2
Data/Ora Ricezione	:	28 Gennaio 2019 08:10:14
Data/Ora Inizio Diffusione presunta	:	28 Gennaio 2019 08:10:15
Oggetto	:	KME Group sells to Hailiang Group its european brass rods business and its tubes business based in Germany and Spain
Testo del comunicato

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Registered Office: 20121 Milan (MI) Foro Buonaparte, 44 Share Capital: Euro 335.069.009,80, fully paid-in Milan Company Register – Tax I.D. Nr. 00931330583 www itkgroup.it

PRESS RELEASE

KME GROUP SELLS TO HAILIANG GROUP ITS EUROPEAN BRASS RODS BUSINESS AND ITS TUBES BUSINESS BASED IN GERMANY AND SPAIN

Milan, 28th January 2019 - Intek Group S.p.A. informs that its fully controlled subsidiary KME AG ("KME"), one of the leading players in the European copper and copper alloy semifinished product industry, reached an agreement with Zhejiang Hailiang Co., Ltd. for the sale of its brass rods business in Germany and Italy, as well as its tubes business in Germany and Spain.

Hailiang is a leading Chinese player in the copper tubes and brass rods market with an international footprint in the US and wider Asia, but no presence in Europe until now. Zhejiang Hailiang is listed on the Shenzhen Stock Exchange.

As announced, the strategic objective of KME Group is to refocus its portfolio on copper and copper alloy rolled products and special products.

After the acquisition of MKM, which agreement has been signed on the 6th of July 2018 and the relevant closing is expected to be executed within the first quarter 2019, the present transaction with Hailiang pursues the reduction of portfolio and industrial complexity of KME Group, by decreasing the number of products and plants. This transaction attains the acceleration of the Group strategy execution.

The Group companies involved in the transaction are KME Brass Germany GmbH, KME Brass Italy S.p.A., Kabelmetal Messing Beteiligungsgesellschaft mbh, KME Ibertubos S.A.U. and assets and liabilities related to the German tubes business owned by KME Germany GmbH and Co.KG. Hailiang has also made a binding offer for the acquisition of KME Brass France SAS, which pertains to the French brass rods business and has granted to KME a put option in this regard. KME is going to immediately start the consultation procedure with the relevant employee representatives bodies following receipt of this offer.

The overall transaction perimeter employs a total of around 1.100 workers and has recorded in 2017 a turnover of around € 540 million and an EBITDA of around € 15 million.

The agreed price consideration for the transaction is € 119 million plus Working Capital and reimbursement of intercompany payables outstanding at closing. The closing of the transaction is subject to conditions precedent and is expected to be executed within the first quarter 2019.

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The press release is available on the Company's website, www.itkgroup.it. Additional information may be directly requested from the Company (telephone number +39.02.806291; e.mail: info@itk.it) and through the "eMarket STORAGE" system operated by Spafid Connect SpA at the address: .