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Successful project closure: INDUS sells minority interest to majority shareholder for EUR 27.5 million

Bergisch Gladbach, 23 July 2019

INDUS Holding AG has signed a basic agreement about the sale of a minority interest held by an INDUS Group company to the majority shareholder. The basic agreement is still subject to the final form of the purchase agreement and the approval of the buyer's Group Management Board. The transaction in the Automotive Technology segment is to be executed in the course of the third quarter of 2019. “We have more than achieved all the defined development targets of the cooperation and are now handing over our complete minority interest to the majority shareholder for the next development stage,” said Dr. Johannes Schmidt, Chairman of INDUS Board of Management, to explain the move.

As an SME holding company, INDUS pursues a long-term portfolio strategy under the motto “Buy, hold & develop”. The strategy is based on majority investments or complete takeovers of the portfolio companies from the Group’s current target segments Construction /Infrastructure, Automotive Technology, Engineering, Medical Engineering/Life Science and Metals Technology. In the context of PARKOUR, the Group’s latest strategy update, INDUS plans to increasingly make investments also in younger companies. This also includes potential minority interests, as in the present case.

In the IFRS consolidated financial statements of INDUS-Holding AG for the 2019 fiscal year, this transaction will result in other operating income of around EUR 16.5 million, which will lead to a corresponding contribution to EBIT in the Automotive Technology segment. The transaction will provide the INDUS Group with cash in the amount of EUR 27.5 million. “The high cash flow from the transaction will give us additional headroom for acquisitions, which we intend to use with a view to the industries of the future defined as part of our strategy program,” Schmidt added.

The success of the minority interest in question shows that there are areas in the automotive sector for which developments pay off. By contrast, series production suppliers are facing increasing problems. This is indicated by the continuing decline in call-off figures and profit warnings from major manufacturers.

Construction/Infrastructure and Engineering remain the strongest segments of the INDUS Group. With its broad portfolio and its focus on innovation and operational excellence within the framework of the PARKOUR strategy, INDUS considers itself well prepared for the future.

About INDUS Holding AG:

Established in 1989 and headquartered in Bergisch Gladbach, INDUS Holding AG is an SME holding company which concentrates on the long-term development of its portfolio companies. The industry focus is on construction/infrastructure, automotive technology, engineering, medical engineering/life science as well as metals technology. As a leading specialist for sustainable corporate development, INDUS attaches great importance to the operational autonomy of its 46 portfolio companies. Since 1995, INDUS Holding AG has been listed in the Prime Standard of the Frankfurt Stock Exchange (ISIN: DE0006200108); in 2018, the Group generated revenues of around EUR 1.7 billion.