EANS-News: Balda AG / Balda creates a production base in the world’s largest market for medical products through US acquisition (with document)

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Mergers – Acquisitions – Takeovers

Bad Oeynhausen (euro adhoc) – PRESS RELEASE

Balda creates a production base in the world’s largest market for medical
products through US acquisition

– Acquisition of California-based C. Brewer Company agreed upon
– Strongly-performing specialist with an excellent reputation among
customers in the medical sector and beyond
– Consistent implementation of the Balda Group’s defined growth strategy

Bad Oeynhausen, December 21, 2012 – Balda is consistently implementing the
growth strategy set out in the first half of this year through the acquisition
of a US company. The manufacturer of high-quality plastic products for the
medical and electronics industries has agreed to purchase 100 percent of the
shares in C. Brewer Company, Anaheim, California, effective as of December
31, 2012. The acquisition strengthens Balda’s medical business, in line with
the buy-and-build strategy laid out for this business segment.

About C. Brewer Co.
The C. Brewer Company specializes in precision injection-molded plastics and
the associated molds. The company develops and manufactures solutions for
customers from the medical and optical industries in particular, but also from
automotive and electronics industries. C. Brewer Co. is a single-source systems
partner for the entire injection molding process. The company is increasingly
focused on the production of plastic parts for highly specialized applications
in the areas of medical technology and diagnostics.

C. Brewer Co. expects revenues of around USD 48 million (approx. EUR 37
for the calendar year 2012, along with clearly positive operating earnings
(EBITDA). Around one-third of its revenues come from medical clients, with 50
percent coming from optics. The company was founded in 1966 and is led by the
second generation of its family owners. It operates at three locations in
California (Anaheim, Irvine and Ontario), employing around 500 people, and has
all the relevant medical product certifications.

Further details about the transactions
– The purchase price for the acquisition totals around EUR 33 million,
including the performance-related earn-out clause of EUR 3.8 million.

– The purchase price is based on a multiple of less than 7 times the
expected adjusted EBITDA in 2012. The purchase will fully be financed
the existing liquidity of the Balda Group. The vendors are the family of
the founders.

– The purchase is part of the buy-and-build strategy for the medical
segment. The goals are increased internationalization, expansion of the
company’s range of services and of its value chain, as well as attracting
new customers.

– 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: ‘The USA is the largest healthcare market in
the world. Therefore, it is of fundamental importance for the development of
our group to have a presence there with our own production locations. With the
purchase of C. Brewer we have acquired a injection-molded plastics
specialist with well established customer relationships that display a high
degree of trust. The company is located in California’s medical valley with a
particularly high density of healthcare customers. This gives Balda an
excellent base for expansion in the USA.’

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.


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

Attachments with Announcement:

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