Stabilus S.A. to acquire entities from SKF Group for a total consideration of USD 339 million to expand industrial business

Stabilus S.A. to acquire entities from SKF Group for a total consideration of USD 339 million to expand industrial business

Luxembourg, April 26, 2016 - Stabilus S.A. (Stabilus, ISIN: LU1066226637) has signed an agreement to acquire ACE, Hahn Gasfedern and Fabreeka/Tech Products from SKF Group in an all-cash transaction for a total consideration of USD 339 million. The consummation of the transaction (closing) is subject to approval by the relevant antitrust authorities. The closing is expected to take place during summer 2016.

The acquisition is in line with Stabilus' strategy to strengthen its industrial business. The entities to be acquired are technologically leading manufacturers of industrial custom motion control solutions comprising the product segments motion, automation and vibration/safety control solutions and four established standalone brands (ACE, Hahn Gasfedern, Fabreeka and Tech Products). In 2015, the entities recorded sales of approximately USD 120 million and EBIT of approximately USD 30 million. As a result of the transaction, Stabilus expects a positive effect on its EBIT margin and earnings per share.

After the closing of the transaction, Stabilus intends to set up a new credit facility of up to EUR 570 million to finance the transaction and at the same time to replace the existing EUR 265 million term loan facility as well as to implement a new EUR 70 million revolving credit facility to replace the (currently unutilized) EUR 50 million revolving credit facility. The new credit facility will have more favorable terms over the duration of the loan than the one installed in 2015.

Stabilus further intends to partially refinance the debt through a capital increase of around EUR 150 million after closing of the transaction. The details of the capital increase will be decided at a later stage, appropriately balancing timing and market considerations.

# End of ad hoc announcement #

Important notice

This ad-hoc announcement may contain forward-looking statements based on current assumptions and forecasts made by Stabilus Group management and other information currently available to Stabilus. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. The reference in this ad-hoc announcement to a potential partial refinancing of debt through a future equity offering does not constitute an announcement of an offer nor an offer of Stabilus' shares to any existing Stabilus shareholder or potential investor in Stabilus' shares in any jurisdiction.