MUNICH, Oct 06, 2015 – Balda AG sells entire operating business, distributions of EUR 2.00 per share, approval by AGM required.
Balda AG concluded a purchase agreement concerning the sales of its entire operating business for a purchase price of 62.9 million EUR. The buyers are acquiring companies, which are managed by investment company Paragon, Munich. The sale comprises all operational units of the Balda Group, i.e. Balda Medical GmbH & Co. KG, Bad Oeynhausen, Balda C.
Brewer, Inc. and Balda Precision, Inc., both in California, USA, as well as Balda Medical Systems SRL, Romania and further assets. “Within the scope of our dialog with investors and possible cooperation partners, we have noticed increasing interest in our operational units. This resulted in specific negotiations, which, ultimately culminated in the agreement that was signed today”, says Oliver Oechsle, sole Management Board member of Balda AG. “The purchase offer by Paragon Partners did not only exceed the fair value calculated by external experts but will also give Balda the opportunity to continue to develop as an individual company”, Oechsle also states.
Paragon Partners is a private and owner-managed investment company, aiming to sustainably improve the strategic and operating business of its shareholdings. Paragons
founding partner Krischan von Moeller adds: “Under the successful management team, the Balda Group will continue as an operational unit in accordance with today’s strategic
orientation. We will support Balda to actively make use of growth opportunities in the areas of medical technology as well as pharmaceutical and, if needed, may provide further equity for organic and external growth.”
Oliver Oechsle says: “By selling the operating business of the Balda Group, we are creating a significant increase in value for the shareholders. But not only the shareholders will benefit, also our employees and customers. Paragon Partners has confirmed that it will maintain the current strategic orientation and organizational structure and that it will retain all employees of Balda AG as well as the management. This means stability and continuity. Balda pursues the goal of continuing to further develop over the next few years – both organically and strategically so as to achieve an order of magnitude that will offer us completely new courses of action. Balda stays Balda!”
All in all, the company receives a gross amount (including profits to be paid out for the past business year) of EUR 66.7 million (before exemptions, taxes and costs) from the sale. The agreement is subject to the condition precedent of approval by the annual general meeting of Balda AG as well as the approval by the anti- trust authorities. The Management Board will shortly send out invitations for the annual general meeting scheduled for 19 November 2015.
Moreover, the Management Board and the Supervisory Board intend to suggest a dividend payment of EUR 1.10 per share. Also, on approval of the purchase agreement the
Management Board and the Supervisory Board plan to reduce the share capital from currently EUR 58,890,636.00 to EUR 5,889,063.00 and to pay back to the shareholders the
share capital thus released. This corresponds to an amount of another EUR 0.90 per current share. Additionally, the Supervisory Board will device a new business model for the AG and present it to the annual general meeting. In this context, the annual general meeting shall also adopt a decision concerning a change of the business purpose of the company and the company name.
Paragon Partners was advised by Novumed Life Science Consulting & Advisory (Commercial Due Diligence).
About Paragon Partners
Paragon Partners is a private, Munich-based investment firm with € 650m of assets under management. Paragon Partners invests in established, mid-sized companies with significant operational value creation potential.
Novumed is an independent strategy consulting & advisory services firm for the life sciences industry. With offices in the US and Europe, Novumed is one of the few global advisors with a clear industry focus. The experienced management consultants and advisory team support life science companies, industry groups and investors in the preparation and implementation of market strategies, innovation strategies and strategic financial transactions.
(Source: MAJUNKE Consulting, www.deal-advisors.com)