euro adhoc: ElringKlinger AG / Mergers - Acquisitions - Takeovers / ElringKlinger close to signing deal for takeover of Swiss heat shield specialist SEVEX AG

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Company Information

14.02.2008

Dettingen/Erms (Germany) / Sevelen (Switzerland), February 14, 2008
+++ ElringKlinger AG is close to finalizing an agreement for the
acquisition of SEVEX AG, Sevelen, a Swiss manufacturer of thermal and
acoustic shielding systems. In addition to acquiring the Swiss parent
company, ElringKlinger plans to take over the US-based subsidiary
SEVEX North America, Inc., Buford, as well as SEVEX Asia,
headquartered in Suzhou, China.

Negotiations nearing completion ElringKlinger is currently working on
the assumption that the purchase agreement will be signed by the end
of March 2008. Both parties to the contract have agreed not to
disclose details of the purchase price. The closing of the takeover
transaction is subject to the usual provisos, in particular the
receipt of official approval by the antitrust authorities.

The SEVEX Group has targeted sales revenue of around CHF 95 million
for 2008 (EUR 59 million). The purchase price is within a range of 7-
to 8- times EBIT (earnings before interest and taxes).

Complementary technology Increasingly, automobile manufacturers are
turning to smaller, lighter and, in many cases, turbocharged engines
with complex exhaust-cleaning technology, the objective being to
scale down fuel consumption and reduce emission levels. Given the
sophisticated engineering processes associated with such high-end
solutions, state-of-the-art automotive components such as thermal
shielding systems are becoming increasingly important to the overall
design. Whereas ElringKlinger has established a strong position
within the area of engine shielding components, SEVEX is recognized
as one of the leading suppliers of underbody heat shield systems and
solutions deployed in the vehicle exhaust tract, drawing on its
extensive knowledge of the materials and engineering processes
involved. Thus, the SEVEX Group is the perfect complement to
ElringKlinger's existing product portfolio. SEVEX operates
development and production units in Sevelen (Switzerland), Buford
(Georgia, USA) and Suzhou (China).

ElringKlinger advances to become second largest supplier worldwide In
2006, ElringKlinger generated sales revenue of approx. EUR 72 million
in its Shielding Technology division and is targeting an increase to
around EUR 90 million in 2007. The acquisition of SEVEX would propel
the ElringKlinger Group to second place in the international supplier
ranking for engine, underbody and exhaust tract shielding systems.

ElringKlinger AG's Chief Executive Officer, Dr. Stefan Wolf,
underlined the technological and strategic importance of the
acquisition: "In SEVEX, we have found the perfect complement to our
core business. By joining forces, we will be able to position
ourselves as a one-stop system supplier of engine, underbody and
exhaust tract components. This will provide us with an even better
vantage point when it comes to unlocking future business development
and growth opportunities within the niche market of shielding
technology." Wolf added, "Our aim is to integrate SEVEX within our
Group's international production network as soon as possible. We also
believe that the transaction will be earnings accretive as early as
2008."

SEVEX AG is one of the leading companies specializing in the
development and production of high-performance heat shields for the
automobile industry as well as system suppliers operating within the
automotive sector. Its customer base includes all of the major
European car manufacturers and suppliers. Employing some 330 people
worldwide, SEVEX is considered one of the market leaders within the
heat shield business. Operating at a global level, the ElringKlinger
Group is a leading development partner and original equipment
manufacturer within the area of cylinder-head and specialty gaskets
as well as housing modules and shielding components used in engines,
transmissions and exhaust systems. The company's R&D activities focus
on reducing fuel consumption, scaling back or eliminating emissions
and developing alternative propulsion concepts. ElringKlinger is
currently working on several new projects, including the development
of fuel cell components and an innovative diesel particulate filter.
The ElringKlinger Group employs around 3,500 people at 21 facilities
worldwide. In the 2006 financial year, ElringKlinger reported sales
revenue of EUR 528.4 (474.6) million and consolidated net income,
after minority interests, of EUR 57.8 (42.4) million.

end of announcement euro adhoc
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ots Originaltext: ElringKlinger AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

ElringKlinger AG

Kathrin Müller

Tel. +49 (0) 7123/724-631

kathrin.mueller@elringklinger.de

Branche: Automotive Equipment
ISIN: DE0007856023
WKN: 785602
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