EANS-News: German Pellets Takes Over Austrian "Hot´ts" Group

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Mergers - Acquisitions - Takeovers

Subtitle: German pellet producer further expands its market position
in Austria by acquiring “Hot’ts Holzpellets”

Wismar / Mattighofen (euro adhoc) - With retroactive effect as of 1
January 2012, German Pellets GmbH, based in Wismar, Germany, has
taken over the Austrian company Glechner, with headquarters in
Mattighofen. The acquisition includes three production sites, the
brand "Hot´ts Holzpellets" and the company´s direct sales division
for wood pellets.

The Glechner Group is one of Austria´s leading wood-pellet
manufacturers and distributors. "Hot´ts" is the second most popular
wood-pellet brand in Austria, after the German Pellets brand
"FireStixx", and also has a significant market share in the
neighbouring region of Lower Bavaria.

In 2012 the Glechner Group expects to generate a turnover of approx.
15 million euros. The parties have agreed not to disclose the
purchase price. "The acquisition of Hot´ts Holzpellets, one of
Austria´s wood-pellet pioneers as well as a profitable company with
an outstanding position in the end-consumer market, is an excellent
opportunity for us," said Peter H. Leibold, managing partner of
German Pellets GmbH.

With the takeover, German Pellets is increasing its market share in
the important sales regions of Upper Austria, Salzburg and Lower
Austria by about 50 per cent. For the Wismar-based pellet
manufacturer, this is an important strategic step for continued
expansion in the Central European pellet market. The company will use
and develop "Hot´ts Holzpellets" as an independent brand alongside
its other brand names, "German Pellets", "FireStixx" and "German
Horse Pellets". The Glechner Group will be operated as an independent
company within the German Pellets Group. Gerhard and Bernhard
Glechner will remain managing directors. Over the past 16 years, the
Glechner brothers have successfully developed the pellet business of
the "Hot´ts" Group, and their ongoing leadership will ensure
continuity.

The three Glechner production sites, in Mattighofen, Oberweis/Gmunden
(both in Austria) and Pfarrkirchen (Bavaria), have a combined annual
capacity of approx. 100,000 tonnes. The Hot´ts Group markets about
half of the manufactured pellets directly through its own logistics
division. The company´s distribution partners also sell its pellets
under the brand name "Hot´ts Holzpellets".

"Like FireStixx, Hot´ts is known in Austria for its high quality
standards and is well established in the country´s private-consumer
market," said German Pellets Managing Director Peter Leibold. The two
wood-pellet brands will continue to operate on the market in Austria
and Southern Germany.

About Glechner Formerly a milling operation, the Glechner Group has
been producing and marketing wood pellets since 1996, making it one
of the pioneers of the Central European wood-pellet industry. By
setting standards in product quality from the very beginning,
"Hot´ts" has become one of the best-known brands of wood pellets in
Austria and Bavaria. The company manufactures premium-quality pellets
at three sites in Upper Austria and Lower Bavaria for the
end-consumer markets in Austria and Southern Germany.

About German Pellets German Pellets is the largest pellet
manufacturer in Europe and the market leader in Germany. The German
Pellets Group produces wood pellets and wood-based animal hygiene
products from renewable resources at 18 sites (including FireStixx
partner sites). The products are sold under the brand names "German
Pellets", "German Horse Pellets", "FireStixx" and "Hot´ts
Holzpellets". The wood pellets manufactured by German Pellets are
used in central heating systems, pellet stoves, heating stations and
power plants for the generation of green heat and green power.

Further inquiry note:
Press contact: Claudia Röhr
Tel.: +49 (0) 3841 30306412
E-Mail: claudia.roehr@german-pellets.de

end of announcement euro adhoc
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company: German Pellets GmbH
Am Torney 2a
D-23970 Wismar
phone: +49 (0) 3841 30 30 6 0
FAX: +49 (0) 3841 - 30 30 6 91 00
WWW: http://www.german-pellets.de
sector: Energy
ISIN: DE000A1H3J67
indexes:
stockmarkets: free trade/Bondm: Stuttgart, Open Market: Frankfurt
language: English