Sabaf

M&A Activity • Jun 9, 2016

Informazione Regolamentata n. 0226-78-2016		Data/Ora Ricezione 09 Giugno 2016 17:36:01	MTA - Star
Societa'	:	SABAF
Identificativo Informazione Regolamentata	:	75444
Nome utilizzatore	:	SABAFN03 - Beschi
Tipologia	:	IROS 01
Data/Ora Ricezione	:	09 Giugno 2016 17:36:01
Data/Ora Inizio Diffusione presunta	:	09 Giugno 2016 17:51:02
Oggetto	:	Sabaf: agreement signed for the purchase of a 70% stake in ARC s.r.l.
Testo del comunicato

Vedi allegato.

Press release Ospitaletto (BS), 9 June 2016

SABAF: AGREEMENT SIGNED FOR THE PURCHASE OF A 70% STAKE IN ARC s.r.l.

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Sabaf S.p.A. announces that today it entered into an agreement with Loris Gasparini and Roberta Calore, partners of ARC s.r.l., with registered office in Campodarsego (PD) ("ARC"), a leader in Italy in the manufacture of burners for professional cooking, for the acquisition of a 70% stake in ARC for a total consideration of €4,800,000.00 (the "Transaction").

This transaction will allow Sabaf to enter a new market that is related to its traditional sector of components for household gas cooking appliances and to enhance the Group's strong international presence.

The Transaction, which is not subject to conditions precedent, is expected to be completed by the end of this month. The consideration will be paid by Sabaf in a lump sum upon execution of the transaction and funded by a five-year unsecured loan.

The agreement provides that Loris Gasparini will remain on as Chief Executive Officer of ARC for a period of five years, after which time Sabaf may exercise an option to purchase the remaining 30% of ARC, as well as Loris Gasparini may exercise a simultaneous sale option. This holding in ARC will be valued according to pre-defined criteria, in line with those used for the valuation of the 70% stake.

ARC closed FY 2015 with sales of €4.4 million, EBITDA of €0.9 million and net profit of €0.6 million. At 31 December 2015, shareholders' equity amounted to €3.1 million and there was a positive net financial position of €2.6 million.

Alberto Bartoli, Chief Executive Officer of Sabaf S.p.A, commented on the agreement: "ARC is a very wellmanaged company with an excellent product that has significant potential for international growth. With Loris Gasparini, we have a shared development path aimed at becoming the global leader in the professional cooking components market." "We will assess the possibility of further acquisitions," concluded Bartoli "using this transaction as a model, which provides for Sabaf's acquisition of a majority interest while leaving operational responsibility with the entrepreneur."

For more information:

Investor Relations	Press Office
Gianluca Beschi	Power Emprise - tel. +39 02 39400100
tel. +39 030 6843236	Cosimo Pastore – +39 335 213305
gianluca.beschi@sabaf.it	cosimopastore@poweremprise.com
www.sabaf.it	Erminia Cannistrà - +39 340 8684279
	erminiacannistra@poweremprise.com
	Claudia Caracausi - +39 338 4476613
	ccaracausi@twistergroup.it

Founded at the beginning of the 1950s, SABAF has grown constantly and has today become the main producer in Italy and one of the world's leading producers of components for kitchens and gas-burning domestic appliances.

Production is based on four main lines: valves, thermostats and burners for gas-burning appliances and hinges for ovens, washing machines and dishwashers.

Technological know-how, production flexibility and the capacity to offer a wide range of components – also planned on the basis of the needs of individual kitchen producers, hob ranges and built-in ovens, and in line with the specific characteristics of the various reference markets – are SABAF's main strong points in a highly specialised sector, in which demand is continuously evolving and increasingly oriented towards products which guarantee absolute reliability and safety.

The Sabaf Group employs more than 700 persons and operates together with the parent company SABAF S.p.A. and with the subsidiaries Faringosi Hinges, leader in the production of hinges for ovens and dishwashers, Sabaf do Brasil, Sabaf Turkey and Sabaf China, operating in the production of burners.