Electronics Production |
VARTA Sells Micro Battery Business Unit
VARTA AG, Hannover, VEG Beteiligungs GmbH, Vienna, and Buy-Out Beteiligungs-Invest AG, Vienna, signed an agreement to the effect that VEG and Buy-Out are expected to take over Varta's micro battery business unit as of end 2006. In 2005, Varta's micro battery business unit achieved sales of around 130 million €.
Subject to common contractual purchase price adjustments, the equity value of the transaction amounts to 30 million €. The transaction is subject to approvals under competition regulations as well as to approval by the Shareholders' Meeting of VARTA AG.
With manufacturing facilities located in Ellwangen and in Asia, the company VARTA Microbattery GmbH holds a worldwide leading position in the segment of rechargeable micro batteries as well of batteries for hearing aids. With its new lithium polymer technology it is among the technological leaders in relevant applications and markets. The company's products are marketed under well known brand names such as VARTA, VARTA PoLiFlex or PowerOne.
Together with VARTA Micro's Management, VEG and Buy-Out, both being part of the Austrian Global Equity Partners Group, will define and implement the further growth strategy for VARTA Micro. Mag. Herbert Roth, Member of Buy-Out's Management Board, stated in this regard: "VARTA Micro is one of the finest and most innovative companies in its niche markets and enjoys an outstanding reputation. We are happy to push ahead, together with Management, the successful development of the company.
Global Equity Partners is a Central European investment group managing investment companies since 1998. The investment focus of Global Equity Partners is located in the areas venture capital, private equity and real estate. Long term targeted investments with focus on manufacturing industries have been added recently; this activity is to be expanded in the future.
In the 2005 management report, as well as recently in the Shareholders' Meeting of the company in May 2006, Dr. Uwe Ganzer, Sole Member of the Management Board of VARTA AG, expressed clear indications that in the long run the micro battery unit will not stay with VARTA AG. After the sale of the consumer battery activities to Rayovac and the acquisition of the automotive battery unit through Johnson Controls in 2002, this transaction is consistent in implementing the sale of the last remaining operative business unit of VARTA AG.
In the transaction Freitag & Co. were Advisors to VARTA AG.
