TAKKT AG — M&A Activity 2012

Mar 22, 2012

News Details

Ad-hoc | 22 March 2012 07:45

TAKKT AG: Acquisition of leading US direct marketing company for display articles

TAKKT AG / Key word(s): Acquisition

22.03.2012 07:45

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
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Further diversification of the product range

Today, the TAKKT Group company K+K America Corporation has signed a
contract to acquire George Patton Associates, Inc. (GPA), based in Rhode
Island, USA. The Supervisory Board of TAKKT AG has already approved the
transaction. The contract is subject to the customary closing conditions,
e.g. the expected approval of the cartel authorities. By acquiring the B2B
direct marketing company for display articles, TAKKT strengthens its US
portfolio. The new company will form a part of the Specialties Group within
TAKKT AMERICA.

With multiple web sites serving many industries, GPA generated turnover of
ca. USD 52 million and an EBITDA margin of ca. twenty percent in 2011. This
makes GPA a leading B2B direct marketing specialist in the US display
product category. Approx. eighty percent of turnover is generated online.
Therefore, the acquisition is an ideal addition for TAKKT.

A purchase price to be paid in two instalments was agreed on for acquiring
the entire interest in GPA. On the closing date (expected in early April),
a first instalment will approx. be USD fifty million. A second instalment
was stipulated for early 2015. The minimum guaranteed amount of this second
payment will be USD 48 million. A supplemental variable earn-out
opportunity up to approx. USD 22 million is based on three year turnover
goals. The current owners have agreed to long-term employment contracts and
will remain responsible for management after the transaction has been
closed. TAKKT funds the acquisition with already committed long-term credit
lines. Even after closing the transaction and paying out the proposed
dividend of 85 cents per share in May 2012, TAKKT will still have a very
solid balance sheet structure with an equity ratio of more than forty
percent.

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Language: English
Company: TAKKT AG
Presselstr. 12
70191 Stuttgart
Germany
Phone: +49 (0)711 346 58 -0
Fax: +49 (0)711 346 58 - 10
E-mail: investor@takkt.de
Internet: www.takkt.de
ISIN: DE0007446007
WKN: 744600
Indices: SDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard), Stuttgart;
Freiverkehr in Berlin, Düsseldorf, München

End of Announcement DGAP News-Service

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