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GESCO AG closes mobility technology segment, undertakes largest portfolio adjustment in company history and renews outlook for financial year 2020

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Gesco AG / Key word(s): Disposal/Forecast
GESCO AG closes mobility technology segment, undertakes largest portfolio adjustment in company history and renews outlook for financial year 2020

21-Dec-2020 / 21:36 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.

Wuppertal, 21 December 2020 - GESCO AG has concluded a contract today on the sale of a group of six subsidiaries. The acquirer is a fund of Evoco AG, Zurich, an investor specialised in the acquisition and development of medium-sized portfolios.

Within the scope of the NEXT LEVEL strategy, GESCO closes the Mobility Technology segment and carries out the largest portfolio adjustment in company history. The four companies that make up the Mobility Technology segment as well as Frank Walz- und Schmiedetechnik GmbH and C.F.K. CNC-Fertigungstechnik Kriftel GmbH will be divested. The closing of the transaction is expected to take place for five of the six companies shortly after the signing of the contract; for Paul Beier GmbH & Co. KG from the Mobility Technology segment, the closing is subject to the granting of regulatory approval.

Based on the figures for financial year 2020, GESCO thereby disposes of roughly € 90 million in sales and some € -15 million in Group EBIT, which consists of an opearating loss of around € -1.5 million and € -13.5 million in impairment losses from impairment tests already carried out in the summer of 2020.

The purchase price amounts to € 27 million and is accompanied by a net cash inflow of € 15 million, which is partially earmarked for reduction of liabilities and partially for acquisitions. In addition, the buyer assumes net liabilities, pension obligations and lease liabilities of in total approximately € 28 million.

Taking into account the transaction and better-than-expected operating business, the outlook for continuing operations for 2020 as a whole has been renewed. The Executive Board now expects Group sales of approximately € 400 million (previously: exceeding € 450 million including the companies which have been sold). In terms of Group net income for the year after minority interest before impairment losses, the Executive Board had expected to at least break even; taking into account the impairment losses, this corresponded to a figure at or exceeding € -13.5 million. Upon completion of the transaction, the Executive Board now expects Group net income for the year after minority interest from continuing operations of roughly € 5 million.

Further information on the transaction can be found in the GESCO AG press release published today.

The key figures Group sales, Group EBIT and Group net income after minority interest are used as in the consolidated financial statements of GESCO AG as at 31 December 2019, available on the internet at http://www.gesco.de/en/financial-reports.

 


Contact:

Head of Investor Relations, Oliver Vollbrecht
Tel. +49-202 24820-18
Fax +49-202 24820-49
E-Mail: info@gesco.de
Internet: www.gesco.de

21-Dec-2020 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de

Language:

English

Company:

Gesco AG

Johannisberg 7

42103 Wuppertal

Germany

Phone:

+49 (0)202 248200

Fax:

+49 (0)202 2482049

E-mail:

info@gesco.de

Internet:

www.gesco.de

ISIN:

DE000A1K0201

WKN:

A1K020

Listed:

Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange

EQS News ID:

1156783


 

End of Announcement

DGAP News Service

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