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News of  August 08, 2000
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DaimlerChrysler Announces Sale of Adtranz to Bombardier
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  • Transaction assures the future of Adtranz and its employees

  • Juergen E. Schrempp "Bombardier is the company best equipped to take Adtranz into the future

Stuttgart, Germany - DaimlerChrysler AG announced an agreement to sell its 100% shareholding in DaimlerChrysler Rail Systems GmbH (Adtranz) to Bombardier Inc., a Montreal, Canada-based international aerospace and rail transportation group. The sale and purchase agreement stipulates a cash consideration of US $725 million (Euro 790 million) to be paid by Bombardier for DaimlerChrysler Rail Systems GmbH (Adtranz) and leads to a positive impact on DaimlerChrysler's earnings. The transaction is subject to approval by regulatory authorities and DaimlerChrysler's Supervisory Board.

  Commenting on the sale Juergen E. Schrempp, Chairman of DaimlerChrysler's Board of Management, said " We are increasingly focusing our portfolio on our automotive activities and automotive-related services. Having progressively improved Adtranz's performance to a break-even point, it is now an appropriate time to combine Adtranz with a company which values rail activities as its core business. We feel Bombardier is the company best equipped to take Adtranz into the future. However, I would like to pay tribute to Adtranz's Chief Executive Officer Rolf Eckrodt and his colleagues for turning the company around."

In 1999, Adtranz's revenues increased 7% to US $3.4 billion (Euro 3.6 billion). In the first half-year 2000, revenues were US $1.7 billion (Euro 1.8 billion), up 17% in the comparable period. Incoming orders for the half year were up 26% to US $1.8 billion (Euro 1.9 billion). Adtranz currently has approximately 22,000 employees.

  Manfred Bischoff, member of the DaimlerChrysler Board of Management and as the Chairman of the Adtranz Supervisory Board responsible for the Adtranz business in the DaimlerChrysler Board, said "Helping Adtranz management to restructure the company and restore it to health has been an exciting challenge. Our restructuring program has put Adtranz firmly on track and has focused the company on its core rolling stock business and services. We can now transfer ownership of a viable operation to a leading international company in the rail transportation industry. I am pleased that we now have a clear future direction for Adtranz and its employees."

Robert E. Brown, President and Chief Executive Officer of Bombardier, said "The combination of Bombardier Transportation and Adtranz will position the new entity among the industry leaders in all activities related to the production of rail vehicles in world markets. This acquisition would complement our transportation activities in terms of geographical markets, products and services, broader capabilities, expertise and assets."

(August 4, 2000)

 

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