HgCapital Trust plc Regulatory News (HGT)

1 Nov 2005 08:04

HG Capital Trust PLC01 November 2005 Hg Capital Trust plc The following is the text from a press release issued by HgCapital, which manages the investment portfolio of HgCapital Trust plc alongside those of other clients. The trust, which participates in all of HgCapital's investments, will invest €13.7 million in Schenck Measuring and Process Technologies. HgCapital announces acquisition of Schenck MPT from Durr AG Frankfurt - London, 1 November 2005. HgCapital, the European sector-focused private equity investor and Durr AG have signed an agreement on the sale of Schenck Measuring and Process Technologies ("Schenck MPT"), which values the company at €205 million. The management of Schenck MPT will participate in the buy-out and take a minority stake. The transaction is expected to close by the end of the year. This is the third acquisition by HgCapital in Germany in 2005. The combined value of these three transactions totals more than €400 million. Schenck MPT is part of Carl Schenck AG, a fully owned subsidiary of Durr AG, with headquarters in Darmstadt, Germany. The company is the global market leader for high-tech applications and solutions in industrial weighing, feeding and automation. Schenck MPT develops, manufactures, assembles, markets and sells a full range of solutions, products, systems and turnkey systems on the basis of reliable components, combining process-engineering expertise and field-proven technology. It is the only company offering its customers a full line of applications and products across the various industries in the market for weighing and feeding. Schenck MPT has activities in more than 40 countries and operates eleven state-of-the art assembly facilities globally, Schenck MPT is organised along four business segments: Heavy Industry (steel, cement, sand & gravel and building materials industries), Light industry (specialty chemicals, plastics and food industries), Mining and Transport & Logistics. In the year 2005, Schenck MPT will generate sales of approximately €225 million. In June 2005 the company employed 1,096 people globally. More then 40% of sales are generated in the high-growth markets of China, India, South America and Eastern Europe. Martin Block, Head of HgCapital Frankfurt, said: "Schenck MPT is the undisputed leader within its industry. The company operates under a highly recognised brand name and has solid and long-established relationships with a large number of blue-chip clients all over the world. The management of Schenck MPT has demonstrated during the successful restructuring of the company that it has a profound understanding of the business and its markets. We fully endorse the management's current strategy and will bring in additional experience, expertise and resources to boost growth and profitability further. Although Schenck MPT already has a strong presence in high growth markets we will look carefully for acquisition opportunities, particularly in the markets of China, India, South America and Eastern Europe." Dr Jochen Weyrauch, CEO of Schenck MPT, said; "The buy-out of Schenck MPT is the decisive next step in order to continue the successful expansion of the business achieved over the last few years. The company has increasingly developed into a standalone business and the most recent reorganisation has laid the platform for the successful separation of this division from the main group. As an independent business, Schenck MPT can be developed with greater focus and efficiency and we look forward to working with HgCapital, which is an experienced shareholder with strong capital resources. With our solutions in measuring and process technologies we believe we are well positioned across all growth industries, in particular the extraction and processing of raw materials." HgCapital was advised by Metzler, Lovells, PwC and LEK. Debt financing was arranged by Mizuho Corporate Bank. For further information HgCapital Martin Block +49 (69) 2470 3711 martin.block@hgcapital.netDr. Karsten Hartmann +49 (69) 2470 3717 karsten.hartmann@hgcapital.net MaitlandDr. Axel Ludeke +44 (20) 7379 5151 aluedeke@maitland.co.ukPeter Ogden +44 (20) 7379 5151 pogden@maitland.co.uk This information is provided by RNS The company news service from the London Stock Exchange