GEA Group sells Dynamit Nobel Kunststoff to Plastal
GEA Group Aktiengesellschaft sold Dynamit Nobel Kunststoff (DNK), a supplier of the automotive industry, to the Swedish Plastal Group. The sale assumes an enterprise value of EUR 350 million. In 2004, DNK, a profitable organization with approximately 5,000 employees, reported sales of roughly EUR 915 million. "The disposal of our plastics business finalizes our strategic realignment initiated in 2003 which has focused our operations on mechanical engineering and plant engineering. In the Plastal Group, DNK enjoys excellent prospects," said GEA Group's Chief Executive Officer Jürg Oleas.
The acquisition of DNK is subject to approval by the antitrust authorities. The transaction is the outcome of a bidding process in which numerous investors participated. The enterprise value of EUR 350 million (before deduction of debt and pension obligations) is equivalent to a DNK 2004 EBITDA multiple of 4.3. In the GEA Group's consolidated financial statements (according to IFRS) at December 31, 2005, this transaction will give rise to an overall loss on discontinued operations, probably in the order of between EUR -165 million and EUR -175 million, taking into account the expected net profit of DNK.
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