DGAP-Ad-hoc: BayWa to divest its DIY and garden centres business
BayWa AG / Key word(s): Disposal/Joint Venture
09.11.2011 11:57
Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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BayWa to divest its DIY and garden centres business
BayWa is to hive off its DIY & Garden Centres Business Unit to form a new
company. The new company will be established under the name of BayWa Bau- &
Gartenmärkte GmbH & Co. KG, with headquarters in Munich. Semer
Beteiligungs-gesellschaft mbH will initially hold a stake of 50 percent
which will be gradually raised to 100 percent. The purchase price will come
to EUR 28 million in total, corresponding to the book value of equity, and
will be paid in several stages. The new company will become operational on
1 January 2012 and will be incorporated into a strategic partnership with
the Hellweg Group. Hellweg, which is a well-known DIY store operator,
belongs to the Semer family, among other assets. The spin-off represents an
important entrepreneurial step for BayWa. Owing to its lack of critical
mass and the fierce competition in the DIY store sector, BayWa's DIY and
garden centres business was unable to earn the targeted cost of capital.
Incorporating these operations into the new company will mean that the DIY
and garden centres business is recognised at equity within the Group. 56
stores of BayWa, which will continue to operate under the BayWa brand, will
be transferred to the new company. The real estate will be owned by BayWa
AG, as before, and will be let to BayWa Bau- & Gartenmärkte GmbH & Co. KG.
Anti-trust approval for the transaction, which was approved by BayWa's
Supervisory Board today, is still pending.
At the same time, the joint venture solution has created future prospects
for the DIY and garden centres business. Combined competences in the
market, synergy effects and specialised retail trade structures will
strengthen the new company for competition and promote growth, thereby
contributing to securing jobs. The Hellweg Group, a well-known DIY
operator, will be contributing its competence in the retail trade to the
company and is responsible for business operations. Through this measure
BayWa will effectively be divesting this area of retail business in the
long run.
BayWa Aktiengesellschaft, Arabellastraße 4, D-81925 Munich, www.baywa.de
Sec. code no. 519406 // ISIN DE0005194062; sec. code no. 519400 // ISIN
DE0005194005
Contact:
Marion Danneboom, BayWa AG, Head of PR/Corporate Communication,
tel. +49 (0)89/92 22-36 80, Fax +49 (0)89/92 22-36 98,
e-mail: marion.danneboom@baywa.de
09.11.2011 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
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Language: English
Company: BayWa AG
Arabellastraße 4
81925 München
Germany
Phone: 089/ 9222-3691
Fax: 089/ 9222-3698
E-mail: marion.danneboom@baywa.de
Internet: www.baywa.de
ISIN: DE0005194062, DE0005194005,
WKN: 519406, 519400,
Indices: MDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard), München;
Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,
Stuttgart
End of Announcement DGAP News-Service
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