Knorr-Bremse Aktiengesellschaft / Key word(s): Disposal
Knorr-Bremse Aktiengesellschaft: Knorr-Bremse adjusts portfolio and sells the Powertech business to Radial Capital Partners
30-Sep-2019 / 13:52 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
|Munich, September 30, 2019 - Knorr-Bremse, the global market leader for braking systems and a leading supplier of other rail and commercial vehicle subsystems, today signed an agreement to sell the Powertech business to Radial Capital Partners (RCP).
The Powertech business (electric power supply systems for rail vehicles and industrial appliances) comprises three companies in Germany, Knorr-Bremse Powertech GmbH, Knorr-Bremse Powertech GmbH & Co. KG and Knorr-Bremse Powertech Verwaltungs GmbH, Knorr-Bremse Powertech Corp. in the US as well as further commercial activities in Australia, Spain and the People's Republic of China. In 2018 the business generated revenues of EUR 90 mill. and a result (EBIT) of EUR -19 mill.
With this portfolio adjustment, Knorr-Bremse aligns the business activities of its RVS division (rail vehicle systems) even more consequently with the key competencies as key provider of sub-systems, components and services for the rail vehicle industry. The ongoing review of the business portfolio for performance and strategic fit concluded that a divestment of the business unit would be the best solution.
Allowing for required capital resources, deconsolidation effects as well as further transaction-related one-off expenses, a restructuring expense in the financial result of just under EUR 80 mill. in total will be charged. The effective ending of operational losses resulting from this business, lies within a region of 50 basis points of the EBIT margin of the Knorr-Bremse group.
The completion of the transaction (closing) is scheduled to happen today, immediately after signing of the sale and purchase agreements (signing).
This release may contain forward-looking statements, estimates, opinions and projections with respect to anticipated future performance of the Company ("forward-looking statements"). These forward-looking statements can be identified by the use of forward-looking terminology, including, but not limited to, the terms "believes," "estimates," "anticipates," "expects," "intends," "may," "will" or "should" or, in each case, their negative, or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts. Forward-looking statements are based on the current views, expectations and assumptions of the management of Knorr-Bremse and involve significant known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Forward-looking statements should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not such results will be achieved. Any forward-looking statements only speak as at the date of this release. We undertake no obligation, and do not expect to publicly update, or publicly revise, any of the information, forward-looking statements or the conclusions contained herein or to reflect new events or circumstances or to correct any inaccuracies which may become apparent subsequent to the date hereof, whether as a result of new information, future events or otherwise. We accept no liability whatsoever in respect of the achievement of such forward-looking statements and assumptions.
Knorr-Bremse expressly disclaims any obligation or undertaking to update, review or revise any forward-looking statement contained in this announcement whether as a result of new information, future developments or otherwise.
Notwithstanding the above, Knorr-Bremse will of course continue to comply with its disclosure obligations in accordance with all applicable laws and regulations.
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