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HOMAG Group AG acquires 51 per cent share in BENZ GmbH Werkzeugsysteme / Ad hoc announcement

Majority takeover of long-standing system supplier

Homag Group AG / Acquisition

Release of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement.

HOMAG Group AG acquires 51 per cent share in BENZ GmbH Werkzeugsysteme

Majority takeover of long-standing system supplier

Schopfloch / Haslach, November 20, 2008. With effect from January 1, 2009, HOMAG Group AG will be taking over a 51 per cent share in BENZ GmbH Werkzeugsysteme, Haslach, ('BENZ') from the current sole shareholder Zimmer GmbH, Vermögensverwaltung in Rheinau, which will be retaining the remaining 49 per cent. A contract to this effect was notarially authenticated on November 20, 2008. BENZ manufactures tools and units for the metal, woodworking and plastics processing industries. The deal also includes acquisition of the division of Zimmer GmbH Technische Werkstätten which is active in the wood processing sector. The company created by the deal will employ a workforce of around 230 and plans to generate a turnover of EURO 35 million in 2009. The takeover is subject to the approval of the Monopolies and Mergers Commission.

The precise price tag paid for the company remains a well-kept secret by common consent. However, the fixed sum paid for the acquired share was based on approximately six times the pro-rated post-tax profits planned for 2009. An increase in the purchase price has also been agreed depending on the operating result actually achieved in 2010. BENZ’s profitability exceeds that of the HOMAG Group AG.

Both BENZ and the Zimmer Group have worked as close partners to the HOMAG Group for many years as system suppliers of various tool components. Following the takeover, BENZ will remain an independent entity operating in its existing location in Haslach in Baden and will retain its established brand name. BENZ will also continue to be managed by its present executive team and to serve its existing customers and markets.

Information and Explaination of the Issuer to this News:

BENZ possesses an extensive fund of expertise in the fields of gearing, spindle and bearing technology. The BENZ product portfolio is distinguished from its competitors by the high performance density of its units coupled with extreme precision. Dr. Joachim Brenk, Spokesman for the Board of HOMAG Group AG. 'With Benz, we are acquiring a highly sound company with which we are very familiar through many years of cooperative partnership and collaboration. This already closely forged link will be further strengthened by our holding a majority share, allowing us to bring innovative new products even more quickly to market and further expand our technological leadership.'

Partners and General Managers of the Zimmer Group and General Managers of BENZ Günther and Martin Zimmer consider the new ownership structure to bring only benefits: 'Under the umbrella of a company with the international standing of the HOMAG Group with its global sales structures, we anticipate huge potential for further growth which we will now be in a position to realize. Consequently not only for the company but for its customers and workforce, joining HOMAG Group AG presents a true win-win situation.'

Background information
With its 14 production companies worldwide, 21 group-owned sales and service companies and approximately 60 exclusive sales partners, HOMAG Group AG’s market position is excellent and its portfolio as a comprehensive system supplier and technology partner makes it unique. Backed by a workforce of more than 5,300 employees, the Company sees itself as the leading global manufacturer for plant and machinery for the woodworking industry for the production of furniture and construction elements as well as prefabricated houses. The group also offers its customers a wide range of services in related areas for production machines and equipment. HOMAG Group AG shares have been trading on the Prime Standard of the Frankfurt Stock Exchange since July 13, 2007 and were listed on the SDAX of the German Stock Exchange on October 2007.

This release contains certain statements relating to the future. Future-oriented statements are all those statements that do not pertain to historical facts and events or expressions pertaining to the future such as 'believes', 'estimates', 'assumes', 'forecasts', 'intend', 'may', 'will', 'should' or similar expressions. Such future-oriented statements are subject to risks and uncertainty since they relate to future events and are based on current assumptions of the Company, which may not occur in the future or may not occur in the anticipated form. The Company points out that such future-oriented statements do not guarantee the future; actual results including the financial position and the profitability of the HOMAG Group as well as the development of economic and regulatory framework conditions may deviate significantly (and prove unfavorable) from what is expressly or implicitly assumed or described in these statements. Even if the actual results of the HOMAG Group including the financial position and profitability as well as the economic and regulatory framework conditions should coincide with the future-oriented statements in this release, it cannot be guaranteed that the same will hold true in the future.


Investor Relations
Simone Müller
Tel.: +49 7443 13-2034

20.11.2008 Financial News transmitted by DGAP
Language: English
Issuer: Homag Group AG, Homagstr. 3-5, 72296 Schopfloch, Deutschland
Phone: +49 (0)7443 / 13 – 0
Fax: +49 (0)7443 / 13 – 2300
ISIN: DE0005297204
WKN: 529720
Indices: SDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Hannover, Stuttgart, München, Hamburg, Düsseldorf

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