SIEMENS COMPLETES SALE OF BUSINESS ACTIVITIES
TO PRIVATE EQUITY HOUSE KKR
Munich, September 25, 2002
-- Siemens’ sale of several business activities
to private equity house Kohlberg Kravis Roberts
& Co. L.P. (KKR), which was agreed on July
25th, 2002, has now closed. As planned, KKR
has taken over businesses that belonged to the
former Atecs Mannesmann Group: Mannesmann Plastics
Machinery, the gas spring producer Stabilus,
Demag Cranes & Components and the harbor
crane unit Gottwald. As part of the package,
Siemens is also selling the metering business
of its Power Transmission and Distribution Group,
the Ceramics Division of its Power Generation
Group, and Network Systems, a regional service
business belonging to its Information and Communication
Networks Group. The transaction comprises businesses
with a total sales volume of some €3.5
billion and around 22,800 employees. The purchase
price totals €1.69 billion. As foreseen,
the business activities were placed in a holding
company, called Demag Holding s.a.r.l (Luxemburg).
KKR holds an 81% and Siemens a 19% stake in
the holding company. Taking into account this
stake, as well as a vendor note of €215
million and net debt assumed in the amount of
€365 million, net cash proceeds for Siemens
will amount to about €1.0 billion.
This press release contains
forward-looking statements based on beliefs
of Siemens' management. The words "anticipate,"
"believe," "estimate," "forecast,"
"expect," "intend," "plan"
and "project" are used to identify
forward-looking statements. Such statements
reflect the company's current views with respect
to future events and are subject to risks and
uncertainties. Many factors could cause the
actual results to be materially different, including,
among others, changes in general economic and
business conditions, changes in currency exchange
rates and interest rates, introduction of competing
products, lack of acceptance of new products
or services and changes in business strategy.
Actual results may vary materially from those
projected here. Siemens does not intend or assume
any obligation to update these forward-looking
statements.
Contacts:
Peter Gottal
80312 Munich
Tel.: +49-89 636-33645; Fax: -32825
E-mail: peter.gottal@siemens.com
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