Siegfried: Acquisition of three BASF sites on track

Consultation procedure in France successfully completed

24-Jun-2015 - Switzerland

As announced at the beginning of May, Siegfried Group (SIX: SFZN) has signed an agreement with BASF of Germany concerning the acquisition of BASF’s custom synthesis and significant parts of the active pharmaceutical ingredients business including related chemical-pharmaceutical production sites in Germany, France and Switzerland. The required consultation process in France has, in the meantime, been successfully completed.

Siegfried’s CEO Dr. Rudolf Hanko: „The acquisition process is on track thanks to the efficient progress of the consultation procedure. We expect the acquisition to be finalized beginning of the fourth quarter.”

Important growth step

Following the successful acquisition of three BASF sites, Siegfried will reach total sales of over CHF 600 million and EBITDA in excess of CHF 100 million. The Siegfried Group will employ a workforce of about 2,200 employees at nine sites on three continents. The transaction provides an attractive base for continued profitable growth. The debt-free price of acquisition amounts to approximately EUR 270 million.

Financing secured

Financing of the transaction is secured by a syndicate of Swiss banks. Moreover, RAG-Stiftung Beteiligungsgesellschaft mbH based in Essen, Germany, will participate in Siegfried Holding AG’s hybrid bond, which will be devoted to finance a part of the acquisition. The bond entitles RAG-Stiftung to convert the amount into Siegfried Holding AG shares within 5 years. This corresponds to a stake in Siegfried of about 7 percent. It is expected that the stock will come from Siegfried Holding AG’s treasury shares. A share capital increase is not planned in this connection.

https://www.bionity.com/en/news/153404/siegfried-acquisition-of-three-basf-sites-on-track.html