Ringmetall plans acquisition in clamping ring segment and significantly increases guidance

Ringmetall Aktiengesellschaft / Key word(s): Takeover/Change in Forecast
Ringmetall plans acquisition in clamping ring segment and significantly increases guidance

17-May-2021 / 11:27 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

Ringmetall plans acquisition in clamping ring segment and significantly increases guidance

Munich, 17 May 2021 - Ringmetall AG (ISIN: DE0006001902) has decided to acquire HOSTO Stolz GmbH & Co. KG ("HOSTO") based in Neunkirchen, Germany. The corresponding resolution was passed at today's Supervisory Board meeting of the company.

HOSTO has been the largest competitor of the Ringmetall Group in the field of clamping ring production for the tinplate industry in Europe. The company's products are generally considered to be of very high quality. In recent years, HOSTO has generated annual revenues of EUR 8 to 10 million with a single-digit EBITDA margin and around 80 employees.

The notarization of the purchase is scheduled to take place tomorrow, 18 May 2021. The acquisition of the operating company as well as all its assets including real estate is planned. The purchase price will be in the mid single-digit million euro range and will be financed from both cash and free credit lines. It is planned to integrate the new company as an additional production site mainly into the Group subsidiary Berger Global. Individual production areas are to be reallocated between company locations of the Ringmetall Group in order to realize production synergies and optimize production processes and capacity utilization. This should be seen in particular against the background that around 80 percent of HOSTO's sales are allocated to the Industrial Packaging segment of the Ringmetall Group. The remaining part of the sales is to be allocated to the Industrial Handling segment in the future.

The acquisition of HOSTO and thus the first-time consolidation of the company in the Group is planned for 31 May 2021. In view of the reallocation of product areas, the Management Board accordingly expects a revenue contribution of EUR 4 to 5 million in the current fiscal year. In view of the expected reallocation costs, a significant contribution to earnings is not expected until the coming year.

Moreover, the Management Board sees a continuation of the consistently positive trend in the business performance of the Ringmetall Group and the overall economic environment in the course of the second quarter to date and its further course to be expected. The forecast for Ringmetall AG's expected business performance for the year as a whole has therefore been raised. Accordingly, the Management Board now expects revenues of between EUR 135 and 145 million (previously: EUR 115 to 125 million) and EBITDA of between EUR 13 and 15 million (previously: EUR 11 to 13 million). The adjusted guidance includes the effects expected in the first half of 2021 from changes in raw material prices and in the exchange rates of the euro to the US dollar, the Turkish lira and the British pound compared to the end of the year. Also included are effects expected to date from the acquisition of HOSTO. For the second half of 2021, possible effects from changes in raw material prices, the aforementioned exchange rates and possible further acquisitions are explicitly not included in the adjusted guidance.

------ End of ad hoc release -----

Information and Explanation of the Issuer to this News:

Ingo Middelmenne
Investor Relations
Ringmetall AG
Phone: +49 (0 )89 45 220 98 12
Mobile: +49 (0 )174 90 911 90
Email: middelmenne@ringmetall.de

About the Ringmetall Group

Ringmetall is a leading international specialist supplier in the packaging industry. The Industrial Packaging business unit offers high-security closure systems and inliners for industrial drums for the chemical, petrochemical, pharmaceutical and food processing industries. The Industrial Handling Business Unit develops application-optimized vehicle attachments for handling and transporting packaging units. In addition to the Group headquarters in Munich, Ringmetall is represented by worldwide production and sales subsidiaries in Germany, Great Britain, Spain, Italy, Turkey, the Netherlands as well as China and the USA. Worldwide, Ringmetall generates sales of around EUR 140 million per year.


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