Schouw & Co. — M&A Activity 2017

Mar 20, 2017

Today Schouw & Co. has entered into an agreement on the acquisition of the
Danish industrial company Borg Automotive in Silkeborg, Denmark. Thereby Schouw
& Co. establishes a new Group activity within the remanufacturing of components
to the automotive industry, and initiates a long-term investment in circular
economy and sustainability.

Borg Automotive remanufactures used auto parts such as starters, generators,
brake calipers, air-condition compressors, etc. During the recent 5 years the
revenue has annually grown by more than 10 percent in average, and for the
fiscal year 2015/16 EBIT reached DKK 101 million.

The business has been assessed at about DKK 1.15 billion on a debt-free basis
(Enterprise Value for 100% of the business). The agreement has been concluded
subject to the approval from relevant regulatory authorities, and a few details
in the final transaction structure remain unsettled, however, it is the
intention that Schouw & Co. shall take over 85% of the business.

The acquisition is expected to become effective from the beginning of April
2017, from which time the business will be fully recognised in the Schouw & Co.
Group’s consolidated financial statement. In connection with the acquisition
the accounting policies of the business will be changed, and for the 9 month
period in 2017 Borg Automotive is expected to be recognised with a revenue of
about DKK 800 million and an EBIT in the range of DKK 110-130 million, from
which adjustments must be deducted due to the purchase price allocation.

For further information please see the press release of today.

Schouw & Co.’s Interim Report for Q1 2017 is scheduled for release on Thursday
4 May 2017, in which the Group’s consolidated expectations for the year are
updated.

Aktieselskabet Schouw & Co.

Jørn Ankær Thomsen, Chairman
Jens Bjerg Sørensen,President

Questions relating to the above should be directed to Jens Bjerg Sørensen,
President, on tel. +45 8611 2222.