. DaimlerChrysler sells its Off-Highway activities
to EQT
Sales price
of EUR1.1 billion, Cash Inflow of estimated EUR1.0 billion
Closing
in the first quarter of 2006
Stuttgart - DaimlerChrysler
AG sells its DaimlerChrysler Off-Highway business unit to financial
investor EQT. The Supervisory Board has approved the sale. The transaction
includes the sale of MTU Friedrichshafen GmbH and of the off-highway
activities of Detroit Diesel Corporation (DDC), Detroit.
DaimlerChrysler
and EQT have agreed on an enterprise value of €1.6billion. In consideration
of cash, cash equivalents, debts and pensions, DaimlerChrysler will
benefit from a cash inflow of estimated €1.0 billion. The transaction
will affect the Group’s operating profit by estimated €0.4 billion,
with net income rising by estimated €0.3 billion.
Dr. Rüdiger Grube,
Member of the DaimlerChrysler Board of Management for Corporate
Development and Chairman of the Supervisory Board of MTU Friedrichshafen
GmbH: “With the sale to EQT, we are putting MTU Friedrichshafen
on the right track for continued expansion. As the prices under
discussion with the three bidders were very similar, we decided
in favor of the bidder with the most convincing concept.”
Marcus Brennecke,
Managing Partner of EQT Germany’s operation: “We are committed to
back MTU in their growth strategy. We at EQT are very glad that
we were chosen as the new owner of MTU, and we want to help MTU
to continue to prosper and be even more successful in the future.
We are very much looking forward to working together with management
and employees to develop the company’s potential.”
In accordance
with the German Foreign Trade and Payments Law, the transaction
has to be submitted for review by the Federal Economics
Ministry. At the same time, investigations by the relevant
anti-trust authorities will be initiated.
Due to
these formalities, the close of the sale, meaning the transfer
of ownership, the cash inflow and the result-influencing
consideration of the transaction presumably will take place
in the first quarter of 2006.
DaimlerChrysler is divesting
its off-highway activities as a part of the Group’s focus on the core automotive
business. In September 2005, DaimlerChrysler acquired the shares in MTU
Friedrichshafen GmbH held by the family shareholders, bringing its equity
interest up to 100%, and then initiated an open bidding process for the
sale of DaimlerChrysler Off-Highway.
EQT is a group of private
equity funds that manages approximately € 6 billion in equity in eight funds.
EQT Partners, acting as investment advisor to all EQT funds, has offices
in Stockholm, Copenhagen, Helsinki, Frankfurt and Munich. EQT realises its
business concept by acquiring and developing high-quality medium sized companies
in Northern Europe. EQT serves as an active owner and works in close co-operation
with the management of the companies it acquires, to develop and implement
value-enhancing strategies.
In total EQT has invested
in 39 companies, with combined sales of approximately €16 billion.
