EQS-Adhoc: Stabilus SE sings agreement to acquire DESTACO

Stabilus SE sings agreement to acquire DESTACO

Koblenz, October 12, 2023 - Stabilus SE (WKN: STAB1L, ISIN: DE000STAB1L8) signed an agreement to acquire the business of DESTACO, which supplies industrial automation components, from Dover Corporation, a global diversified industrial manufacturer headquartered in the USA. The transaction volume amounts to US$680 million, subject to customary post-closing adjustments, and will be paid in cash by Stabilus. The closing of the transaction is expected in the first half of calendar year 2024 and is still subject to customary closing conditions, including regulatory approvals and the finalization of certain local transactions.

DESTACO is headquartered in Auburn Hills, Michigan, USA. It is active in the development and manufacture of automation, workholding and remote handling components and solutions, thus complementing Stabilus' offering in the industrial sector. The company’s products for equipping production areas and lines serve industries such as consumer goods, packaging, aerospace, automotive, life sciences, and nuclear. In 2022, DESTACO generated revenues of US$213 million. It employs approximately 650 employees across 13 locations in the USA, Europe, India, China and Thailand.

At the Group level of Stabilus, the acquisition is expected to significantly increase sales with an immediate positive impact on its adjusted EBIT margin^[1] after closing of the transaction and full consolidation of DESTACO. The acquisition has no impact on the business figures and the forecast for fiscal 2023.

At closing, Stabilus will finance the transaction with c. €150 million of its own cash, €250 million from a currently unused revolving credit facility and €250 million from a bridge facility.

________________________

^[1] The adjusted EBIT margin is calculated as adjusted EBIT divided by revenue. Adjusted EBIT is EBIT, i.e., earnings before interest and taxes (profit from operating activities), adjusted for non-recurring items (e.g. restructuring expenses or non-recurring consulting expenses) and depreciation / amortization of fair value adjustments from purchase price allocation (PPA).

End of ad hoc announcement

Investor contact:
Andreas Schröder
VP Investor Relations and External Communication
Tel.: +49 261 8900 8198
E-Mail: anschroeder@stabilus.com
Web: www.ir.stabilus.com

Press contact:
Peter Steiner
Tel.: +49 69 794090 27
E-Mail: stabilus@charlesbarker.de
Charles Barker Corporate Communications

Important note

This ad hoc release may contain forward-looking statements based on current assumptions and forecasts made by Stabilus Group management and other information currently available to Stabilus. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here.

1746917  12-Oct-2023 CET/CEST