EANS-News: Balda AG / Balda forcefully extends its presence in the USA through acquisition of HK Plastics Engineering, Inc.

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Subtitle: Next step in the buy-and-build strategy for the medical segment

Mergers – Acquisitions – Takeovers

Bad Oeynhausen, December 29, 2012 (euro adhoc) – Balda, a producer of
high-quality plastic products for the medical and electronics industries, has
agreed the purchase of 100 percent of the shares of HK Plastics Engineering,
Inc., Oceanside, California, effective as of December 31, 2012. Through this
acquisition, the group forcefully extends its presence in the
strategically-important US market. Recently, Balda had announced the acquisition
of California-based plastics producer C. Brewer Company, Anaheim, also effective
as of December 31, 2012. The two acquisitions particularly strengthen Balda’s
medical business, in line with the buy-and-build strategy laid out for this
business segment.

About HK Plastics Engineering, Inc.
HK Plastics Engineering, Inc. is a full-service supplier of injection-molded
plastics and the associated molds. Its services range from design and
development to tool manufacturing and the molding process up to mechanical
installations. The second-generation family company, which was founded in 1974,
specializes in supplying highly-regarded customers in the field of medical
technology, and is therefore able to fulfill the most stringent requirements in
both its products and services.
HK Plastics Engineering, Inc. operates a production facility at its headquarters
in Oceanside and employs around 80 people. The company expects revenues of
around USD 15 million (approx. EUR 11.5 million) and positive operating earnings
(EBITDA) for the calendar year 2012. More than 80 percent of its revenues come
from medical customers.

Further details about the transaction
The purchase price amounts to a higher single-digit range (EUR million). It will
fully be financed with the existing liquidity of the Balda Group. The sellers
are the families of the founders. The purchase price is based on a multiple of
less than 7 times the expected adjusted EBITDA in 2012.

M&A International Inc. with its partner firms Angermann M&A International GmbH
and Masi Ltd. acted as M&A advisor for Balda in this transaction.

Dominik Müser, CEO of Balda AG: ‘HK Plastics Engineering is mainly focused on
the diagnostics markets and therefore it matches perfectly the medical business
of our acquisition C. Brewer Co. that has a clear focus on medical devices. With
the purchase of the two injection-molded plastics specialists Balda has now a
strong footprint in the important US market.’

About Balda
Balda is a producer of high-quality plastics solutions for the medical
technology and electronics markets. The company provides superior engineering
services, products of the highest quality as well as a fast, flexible and
tailored service for its customers. The Balda Medical segment in Bad Oeynhausen
develops and produces high-quality plastics solutions for the medical
technology, pharmaceutical and diagnostics markets. The Balda Group generated
revenues of EUR 24.7 million in the short financial year 2012 (1 January to 30
June 2012) compared to EUR 66.3 million in calendar year 2011. The Balda share
(ISIN: DE0005215107) is listed on the SDAX segment of Deutsche Börse.
www.balda.de; www.balda-medical.de

Further inquiry note:
Frank Elsner
Frank Elsner Kommunikation für Unternehmen GmbH
Tel.: +49 – 54 04 – 91 92 0
Fax: +49 – 54 04 – 91 92 29

company: Balda AG
Bergkirchener Str. 228
D-32549 Bad Oeynhausen
phone: +49 (0) 5734 9 22-0
FAX: +49 (0) 5734 922-2747
mail: info@balda.de
WWW: www.balda.de
sector: Semiconductors & active components
ISIN: DE0005215107
indexes: CDAX, Prime All Share
stockmarkets: free trade: Berlin, München, Hamburg, Düsseldorf, Stuttgart,
regulated dealing/prime standard: Frankfurt
language: English