Tags: DaimlerChrysler General/Industry
DaimlerChrysler and EQT have agreed on an enterprise value of €1.6billion. In consideration of cash, cash equivalents, debts and pensions, DaimlerChrysler will benefit from a cash inflow of estimated €1.0 billion. The transaction will affect the Group’s operating profit by estimated €0.4 billion, with net income rising by estimated €0.3 billion.
Dr. Rüdiger Grube, Member of the DaimlerChrysler Board of Management for Corporate Development and Chairman of the Supervisory Board of MTU Friedrichshafen GmbH: “With the sale to EQT, we are putting MTU Friedrichshafen on the right track for continued expansion. As the prices under discussion with the three bidders were very similar, we decided in favor of the bidder with the most convincing concept.”
Marcus Brennecke, Managing Partner of EQT Germany’s operation: “We are committed to back MTU in their growth strategy. We at EQT are very glad that we were chosen as the new owner of MTU, and we want to help MTU to continue to prosper and be even more successful in the future. We are very much looking forward to working together with management and employees to develop the company’s potential.”
In accordance with the German Foreign Trade and Payments Law, the transaction has to be submitted for review by the Federal Economics Ministry. At the same time, investigations by the relevant anti-trust authorities will be initiated.
Due to these formalities, the close of the sale, meaning the transfer of ownership, the cash inflow and the result-influencing consideration of the transaction presumably will take place in the first quarter of 2006.
DaimlerChrysler is divesting its off-highway activities as a part of the Group’s focus on the core automotive business. In September 2005, DaimlerChrysler acquired the shares in MTU Friedrichshafen GmbH held by the family shareholders, bringing its equity interest up to 100%, and then initiated an open bidding process for the sale of DaimlerChrysler Off-Highway.
EQT is a group of private equity funds that manages approximately € 6 billion in equity in eight funds. EQT Partners, acting as investment advisor to all EQT funds, has offices in Stockholm, Copenhagen, Helsinki, Frankfurt and Munich. EQT realises its business concept by acquiring and developing high-quality medium sized companies in Northern Europe. EQT serves as an active owner and works in close co-operation with the management of the companies it acquires, to develop and implement value-enhancing strategies.
In total EQT has invested in 39 companies, with combined sales of approximately €16 billion.
