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Masterflex SE — Regulatory Filings 2008
Dec 17, 2008
276_rns_2008-12-17_b1b0eb53-e760-4341-a85e-2dfc94276592.html
Regulatory Filings
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Ad-hoc | 17 December 2008 08:03
Masterflex AG sells subsidiary DICOTA GmbH
Masterflex AG / Disposal/Strategic Company Decision
Release of an Ad hoc announcement according to § 15 WpHG, transmitted by
DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
Ad hoc announcement in accordance with Section 15 of the
Wertpapierhandelsgesetz (WpHG = German Securities Trading Act)
Masterflex AG sells subsidiary DICOTA GmbH
- Important step towards strategic orientation
- Further concentration on highly profitable core business in high-tech
hose systems
Gelsenkirchen, Germany, 17 December 2008. As part of its move to focus on
the profitable core business of high-tech hose systems, Masterflex AG sold
its subsidiary DICOTA GmbH. DICOTA is a leading provider of laptop bags,
case solutions and mobile computing accessories. The sale went through
despite the difficult economic climate.
The selling price, which includes a debtor warrant, is as much as EUR 13.6
million. After deducting selling costs and adding in the repayment of
shareholder loans, Masterflex AG stands to gain liquid funds of EUR 15.5
million maximum. This will be used primarily to reduce net debt. In
accordance with IFRS, this transaction is expected to result in a loss of
about EUR 9.0 million not yet reflected in the earnings forecast. The
precise effect will become clear after the deconsolidation is complete.
DICOTA had been part of the Masterflex Group since 2001. DICOTA is expected
to have generated revenue for fiscal year 2008 comparable with that of the
previous year, roughly EUR 50.0 million, and to see a noticeable drop in
earnings before interest and taxes (EBIT) to about EUR 4.4 million.
The sale of DICOTA GmbH is an important step in the strategic orientation
of Masterflex AG towards the profitable core business of high-tech hose
systems. Not only were there no synergy effects with the core business, but
the broad expansion of DICOTA in recent years had a negative financial
impact on the Masterflex Group. The subsidiary contributed heavily to the
increase in net debt and worsened the cash flow situation.
Further information: Masterflex AG, Investor Relations, Willy-Brandt-Allee
300,
45891 Gelsenkirchen, Germany, [email protected],Tel. +49 209
97077 44.
Information and Explaination of the Issuer to this News:
Press Release
Masterflex AG sells subsidiary DICOTA GmbH
- Important step towards strategic orientation
- Further concentration on highly profitable core business in high-tech
hose systems
Gelsenkirchen (Germany), 17 December 2008. Masterflex AG has sold its
subsidiary DICOTA GmbH. DICOTA is a leading provider of high-value laptop
bags, individualised case solutions and mobile computing accessories. The
company had been part of the Masterflex Group since 2001. DICOTA is
expected to have generated revenue for fiscal year 2008 comparable with
that of the previous year, roughly EUR 50.0 million and to see a drop in
earnings before interest and taxes (EBIT) to about EUR 4.4 million.
The selling price, which includes a debtor warrant, is as much as EUR 13.6
million. After deducting selling costs and adding in the repayment of
shareholder loans, Masterflex AG stands to gain liquid funds of EUR 15.5
million maximum. This will be used primarily to reduce net debt. In
accordance with IFRS, this transaction is expected to result in a loss of
about EUR 9.0 million not yet reflected in the earnings forecast. The
precise effect will become clear after the deconsolidation is complete.
The Masterflex Executive Board assumes that both liquidity and the
consolidated EBIT margin will improve during fiscal year 2009 as a result
of the sale of DICOTA.
The sale of DICOTA GmbH is an important step in the strategic orientation
of Masterflex AG towards the profitable core business of high-tech hose
systems. Not only were there no synergy effects with the core business, but
the broad expansion of DICOTA in recent years had a negative financial
impact on the Masterflex Group. The subsidiary contributed heavily to the
increase in net debt and worsened the cash flow situation. The sale also
reduces the dependence of Masterflex on economic factors in segments
outside its core business.
'The rapid expansion of High-Tech Hose Systems will be at the forefront of
all activities in the next few years', said Dr. Andreas Bastin, CEO of
Masterflex AG. 'An examination of the soundness and potential for synergy
for the core business takes top priority in all activities; the very high
profitability of High-Tech Hose Systems is expected to spread throughout
the Group as a whole, thereby increasing goodwill over the long term.'
Moreover, had DICOTA remained part of the Group, the economic downturn
would have required Masterflex to initiate a full-scale reorganization of
DICOTA GmbH to develop new growth potential. The Masterflex Executive Board
believes that due to its proven long expertise in this market segment, the
buyer will be better able to guide this process.
Further information: Masterflex AG, Investor Relations, Willy-Brandt-Allee
300,
45891 Gelsenkirchen, Germany, [email protected],Tel. +49 209
97077 44
17.12.2008 Financial News transmitted by DGAP
Language: English
Issuer: Masterflex AG
Willy-Brandt-Allee 300
45891 Gelsenkirchen
Deutschland
Phone: +49 (0)2099 70 77-44
Fax: +49 (0)2099 70 77-20
E-mail: [email protected]
Internet: www.masterflex.de
ISIN: DE0005492938
WKN: 549 293
Indices: Prime all share
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, Hamburg, München, Stuttgart
End of News DGAP News-Service