ElringKlinger Group acquires US transmission component specialist M&W Manufacturing

ElringKlinger AG  / Key word(s): Acquisition13.02.2015 07:54Dissemination of an Ad hoc announcement according to § 15 WpHG, transmittedby DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.---------------------------------------------------------------------------Dettingen/Erms (Germany), Warren, Michigan (USA), February 13, 2015 +++ElringKlinger has acquired US automotive supplier M&W Manufacturing Co.,Michigan, thereby significantly expanding its market position as a supplierof spacer plates for automatic transmissions - in North America andworldwide.ElringKlinger AG has acquired all interests in the US company M&WManufacturing Co. from the former owner family of the business. Theagreement was closed on the evening prior to this announcement.  M&W is tobe included in the scope of consolidation of the ElringKlinger Groupretrospectively as of February 1, 2015. The entity's sales and earningsthus will contribute to ElringKlinger Group sales and earnings for fiscal2015 for a period spanning 11 months.The acquisition of M&W is seen as an important milestone in the expansionof ElringKlinger's Specialty Gaskets division, which generated sales ofapprox. EUR 200 million in 2014. The division primarily develops andproduces turbocharger gaskets, high temperature gaskets and components forexhaust gas recirculation (EGR) and exhaust systems as well as controlplates for automatic and dual-clutch transmissions.The latest acquisition will allow the division to underpin its regionalpresence in North America and its production activities in the US market.Together with US market leader M&W, ElringKlinger has advanced to becomethe premier supplier of transmission spacer plates. In addition tosupplying the North American market, M&W has started to increasingly servethe Chinese market from its US production site.ElringKlinger will thus be pursuing opportunities in an additional field ofstructural growth. The market has seen significant growth in the proportionof high-performance automatic and dual-clutch transmissions, prompting moreexpansive demand in the coming years for key components such as controlplates for transmission systems. As regards production and processtechnology, M&W's manufacturing activities in the field of transmissionspacer plates complement ElringKlinger's screen printing and metal beadbased technology. These technologies can be rolled out rapidly atproduction facilities operated by the ElringKlinger Group around the globe.M&W employs around 100 people at its two company sites at Warren andRoseville, Michigan. The target for fiscal 2015 is to generate salesrevenue totalling between EUR 33 and 34 million, with a projected operatingmargin (adjusted EBIT before purchase price allocation) in highsingle-digit figures. The purchase price is approx. 0.8-times the amount ofsales revenues budgeted for 2015 and includes the assumption of financialliabilities totalling EUR 4.5 million. The parties to the contract haveagreed not to disclose further details relating to the transaction.ElringKlinger will implement further improvements with regard to costs andearnings through further automation and mutual support in the field ofdevelopment as well as production methods.The announcement of the acquisition of M&W will be accompanied by a briefconference call today, February 13, 2015  at 11:00 a.m. CET.For further information please contact:ElringKlinger AGCorporate PR / Investor RelationsStephan HaasMax-Eyth-Straße 272581 DettingenFon: +49 (0)7123-724-631; +49 (0)170-9246264; Fax: +49 (0)7123-724-641E-Mail: stephan.haas@elringklinger.de13.02.2015 The DGAP Distribution Services include Regulatory Announcements,Financial/Corporate News and Press Releases.Media archive at www.dgap-medientreff.de and www.dgap.de--------------------------------------------------------------------------- Language:     EnglishCompany:      ElringKlinger AG              Max-Eyth-Straße 2              72581 Dettingen/Erms              GermanyPhone:        071 23 / 724-0Fax:          071 23 / 724-9006E-mail:       stephan.haas@elringklinger.deInternet:     www.elringklinger.deISIN:         DE0007856023WKN:          785602Indices:      MDAXListed:       Regulated Market in Frankfurt (Prime Standard), Stuttgart;              Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg,              Hanover, Munich End of Announcement                             DGAP News-Service ---------------------------------------------------------------------------