– Sale of 51% stake to MBO company
– Analytik Jena project business interests secured in the long term on the basis of a minority stake
– Higher transparency and planning security for shareholders with focus on the instruments growth sector
Jena, Germany March, 31th 2008 To the end of March, Analytik Jena AG (ISIN DE0005213508) signed a contract to sell the majority (51%) in AJZ Engineering GmbH to a participation company founded by the management of the project company. In the future Analytik Jena will concentrate on its core business and growth segment – the development, manufacture and sales of the classical analysis systems, bioinstruments, reagents and consumables, laboratory data systems as well as the optical consumer products combined in the instrument business. At the same time, this model allows further use of the existing synergies to the project business such as the integration of equipment by Analytik Jena for analytic or bio-analytic laboratories.
With the conclusion of this agreement, Analytik Jena receives an amount of EUR 0.9 million for the sale of a 51% stake. The agreement includes a mutual right to withdraw from the contract, which expires on April 30, 2008 at the latest and is subject to certain conditions. In particular, these include the final financial approval of the lender and the necessary agreement of two banks in connection with the existing “Schuldscheindarlehen” of Analytik Jena. By resolution on 17 March 2007, the Analytik Jena AG Supervisory Board unanimously approved the disposal of the stake.
Parallel to the purchase contract, a cooperation agreement was signed which regulates important points on the further strategic cooperation of the companies. As a major part of the agreement Analytik Jena initially will continue to secure the bank credit lines required for the financing of the ongoing projects of the project business. Securitization of new projects will be decided on a case-by-case basis. These will be initially continued and successively reduced over a period of 3 to 5 years. In this period, complete financial independence of AJZ from Analytik Jena AG is to be achieved on the basis of various measures.
After the Analytik Jena IPO in 2000, high earnings contributions from the project business made it possible to finance growth in the instrument business. Overall, the project business was subject to significant fluctuations of revenue and due to this high volatility difficult to plan and forecast. This also could not be ruled out for the future. The gross and earnings margins generated in the project business operated in-house by AJZ Engineering GmbH were low. On the other hand, the instrument business unit has posted high double-digit growth for three years. Thus the now completed reduction of the stake in the project business represents a further step in the company implementing its strategic objectives. When the share disposal is completed, the Analytik Jena Group will consist largely of the Instrument Business segment. The operating result of this unit is not impacted by the transaction.
Klaus Berka, Chairman of the Analytik Jena AG Executive Board, comments: “The decision is one in favour of growth, focus on the core business and a considerably higher level of transparency for the Analytik Jena business model. The innovative strength, combined with the high market potential of the instrument business was and is the basis for the current and future development of the company. We will concentrate on the core business and create clarity for investors. At the same time, existing synergies to the project business can still be exploited to mutual benefit.”