STADA Arzneimittel AG — M&A Activity 2012

Sep 25, 2012

News Details

Ad-hoc | 25 September 2012 12:11

STADA: sale of two Russian production facilities successfully closed – personnel reduction goal in the context of ‘STADA – build the future’ reached earlier than planned

STADA Arzneimittel AG / Key word(s): Disposal

25.09.2012 12:11

Dissemination 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.

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Bad Vilbel, September 25, 2012 - Today, on September 25, 2012, STADA
Arzneimittel AG (hereinafter referred to as 'STADA'), Bad Vilbel,
successfully concluded the sale of both Russian production facilities, OOO
Makiz Pharma, Moscow, and OOO Skopin Pharmaceutical Plant, Ryazanskaya
obl., to LLC DMN Invest, Moscow, in the context of a partial management
buyout (see the Company's ad hoc release of August 7, 2012 regarding the
approval of the sale by the STADA Executive Board and the STADA Supervisory
Board as well as the ad hoc update on the signing of the contract on August
15, 2012).

In the context of this disposal, which represents another significant step
in the production restructuring in the context of the Group-wide cost
efficiency program 'STADA - build the future' introduced in 2010 (see the
Company's Ad-hoc release of June 7, 2010 as well as STADA's Annual Report
2011), STADA incurs a one-time burden on earnings in the amount of
approximately Euro 9.2 million before taxes or approximately Euro 7.3
million after taxes, which STADA will report as a one-time special effect
in the current third quarter of 2012. This burden is less than the expenses
originally planned in the context of 'STADA - build the future' for the
Russian production restructuring.

The production of all products, which are currently produced for the STADA
Group in both disposed Russian production facilities, will be gradually
transferred to other existing Russian STADA production facilities -
expected to be finalized by the end of 2014 in the context of a program
that has already commenced - whose capacity utilization and cost structure
will be substantially improved on the mid-term as a result. Regarding such
products made for Russian STADA sales companies that are initially still
produced in the sold production facilities during this transitional period,
comprehensive supply and service agreements with the acquirer will ensure a
continued supply for the period required by STADA and largely following the
internal STADA transfer price structure. Following the completion of all
product transfers, STADA expects, from today's perspective, cost
improvements of more than Euro 10 million annually as a result of the
restructuring of the Russian production locations.

In the context of today's completion as part of the restructuring, 186
full-time positions were immediately reduced in the STADA production
companies at the locations of both sold production facilities. The affected
persons are employed at previous conditions by the purchaser with immediate
effect. Additionally in the course of the transaction, the purchaser has
assumed the contractual obligation for a further up to approximately 200
full-time positions, which initially remain with local STADA subsidiaries
at the locations of both sold production facilities in order to secure the
ongoing production and product transfers. Each affected person will thereby
be offered employment at previous conditions when they are laid off by the
local STADA subsidiaries after completion of the transfers at the latest.
As a result of the total personnel reduction, STADA could incur further
one-time burdens of up to Euro 1 million by the end of 2014, for which,
however, from today's perspective, a total amount of significantly less
than Euro 0.5 million is expected.

Due to the now completed sale of the Russian plants, STADA has reached a
significant restructuring goal of the 'STADA - build the future' program
within the current financial year 2012, and thereby earlier than originally
planned, namely the reduction of the number of personnel of 2010 by
approximately 10 percent (corresponding to approximately 800 full time
positions) throughout the Group by the end of 2013.

Additional information:
STADA Arzneimittel AG / Corporate Communications / Stadastraße 2-18 / 61118
Bad Vilbel - Germany / Tel.: +49(0) 6101 603-113 / Fax: +49(0) 6101 603-506
/ E-Mail: communications@stada.de /
Or visit us in the Internet at www.stada.com

25.09.2012 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

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Language: English
Company: STADA Arzneimittel AG
Stadastraße 2-18
61118 Bad Vilbel
Germany
Phone: +49 (0)6101 603- 113
Fax: +49 (0)6101 603- 506
E-mail: communications@stada.de
Internet: www.stada.de
ISIN: DE0007251803, DE0007251845,
WKN: 725180, 725184,
Indices: MDAX
Listed: Regulierter Markt in Düsseldorf, Frankfurt (Prime Standard);
Freiverkehr in Berlin, Hamburg, Hannover, München, Stuttgart

End of Announcement DGAP News-Service

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