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        IMA

Balda sells operations to Paragon; EUR62 mn price

German plastics products moulder Balda AG has sold its entire operating business for a purchase price of EUR62.9 million. The buyers are acquiring companies, managed by investment company Paragon, Munich. The sale comprises all operational units of the Balda Group, i.e. Balda Medical GmbH & Co. in Germany, Balda C. Brewer Inc. and Balda Precision Inc., both in California, US, as well as Balda Medical Systems SRL, Romania, and further assets.

Balda C. Brewer in the US has a 192,000-sq ft production area, including 11,000 sq ft clean room area of purity class 8, while Balda Medical in Germany has a 150,000-sq ft production area, including 38,000 sq ft class 8 clean room. Both companies are involved in cleanroom moulding for the healthcare industry including the eyewear, electronics and automotive sectors. Balda Precision in the US is involved in CNC turning for the aerospace, orthopaedic and industrial sectors.

"Within the scope of our dialog with investors and possible cooperation partners, we have noticed increasing interest in our operational units. This resulted in specific negotiations, which, ultimately culminated in the agreement that was signed today,” said Oliver Oechsle, sole Management Board member of Balda AG. "The purchase offer by Paragon Partners did not only exceed the fair value calculated by external experts but will also give Balda the opportunity to continue to develop as an individual company,” Oechsle also stated.

Paragon Partners is a private and owner-managed investment company, aiming to sustainably improve the strategic and operating business of its shareholdings. Paragon’s founding partner Krischan von Moeller adds: "Under the successful management team, the Balda Group will continue as an operational unit in accordance with today's strategic orientation. We will support Balda to actively make use of growth opportunities in the areas of medical technology as well as pharmaceutical and, if needed, may provide further equity for organic and external growth."

Oliver Oechsle says: "By selling the operating business of the Balda Group, we are creating a significant increase in value for the shareholders. But not only the shareholders will benefit, also our employees and customers. Paragon Partners has confirmed that it will maintain the current strategic orientation and organisational structure and that it will retain all employees of Balda AG as well as the management. This means stability and continuity. Balda pursues the goal of continuing to further develop over the next few years - both organically and strategically so as to achieve an order of magnitude that will offer us completely new courses of action. Balda stays Balda!"

All in all, the company receives a gross amount (including profits to be paid out for the past business year) of EUR66.7 million (before exemptions, taxes and costs) from the sale.

The agreement is subject to the condition precedent of approval by the annual general meeting of Balda AG as well as the approval by the anti-trust authorities. The Management Board will shortly send out invitations for the annual general meeting scheduled for 19 November 2015.

Moreover, the Management Board and the Supervisory Board intend to suggest a dividend payment of EUR1.10 per share. Also, on approval of the purchase agreement the Management Board and the Supervisory Board plan to reduce the share capital from currently EUR58,890,636.00 to EUR5,889,063.00 and to pay back to the shareholders the share capital thus released. This corresponds to an amount of another EUR 0.90 per current share.

Additionally, the Supervisory Board will device a new business model for the AG and present it to the annual general meeting. In this context, the annual general meeting shall also adopt a decision concerning a change of the business purpose of the company and the company name.

(IMA)


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