EQS-Adhoc: GESCO SE: Doerrenberg sells business units foundry and steelworks

The subsidiary Doerrenberg Edelstahl GmbH has successfully sold its two business units “Foundry” and “Steelworks” to Callista Private Equity GmbH. The corresponding contract was signed today and the takeover will take effect on January 1, 2025. It was agreed not to disclose the purchase price.

In the current financial year, the two divisions are expected to generate sales of €19 million (previous year: €28 million). This decline in sales is due to the challenging economic market environment and the increasing price pressure from competitors.

Doerrenberg intends to use this sale to focus on its core competence as an internationally operating tool steel distribution organization. The Surface Technology (Coating & Hardening) and Construction Solutions for complex cast components (Casting Products) units are not affected by the transaction and remain part of the Doerrenberg Group.

After intensive deliberations, GESCO and Doerrenberg have examined various options and held talks with a number of potential investors in order to find the best long-term solution for the two business units. In Callista, a buyer has been found that has extensive experience in acquiring companies undergoing change and also has broad and relevant industry experience. This transaction marks a very positive conclusion of the targeted transformation process for both Doerrenberg and the affected employees. In the course of the sale, all material assets, contractual relationships and employees belonging to the business units will be transferred to the buyer as part of the business transfer. The buyer will also assume the existing company agreements and is committed to the reconciliation of interests negotiated with the employee representatives.

The sale of the loss-making business units at Doerrenberg will result in a one-time charge of around €4.5 million to the 2024 annual result. On the other hand, the transaction will increase the operating result (EBIT) by an amount in the low single-digit millions annually in the future.

Due to the expected one-off effects of the sale, the forecast for the annual result has been adjusted to between €3.5 million and €7.5 million. In terms of pure operations, the Management Board is maintaining the previous forecast.

About GESCO:

GESCO SE is an industrial group with market- and technology-leading companies in the capital goods industry specialising in process, resource, healthcare and infrastructure technology. As a Prime Standard-listed company, GESCO SE gives private and institutional investors access to a portfolio of hidden champions in the industrial SME sector.

 

Contact GESCO:

Peter Alex
Head of Investor Relations

Phone: +49 (0) 202 24820-18
E-Mail: ir@gesco.de
Internet: www.gesco.de

2054139  18-Dec-2024 CET/CEST