Takeover of the operating companies of Balda AG: Heitkamp & Thumann offer the better alternative
- Significantly more attractive offer for shareholders: considerable gains in value immediately realizable
- Paragon offer: shareholders would have to finance the sale of their own business and bear interest rate risks and the risk of default; considerable additional costs due to the necessary complete rebranding.
- Significantly more attractive offer for employees: genuine prospects resulting from integration into a rapidly growing family business with a long-term perspective
Düsseldorf, October 22, 2015 - The Heitkamp & Thumann Group, one of the world's leading manufacturers of precision-formed metal and plastic components, is convinced that its offer for the planned takeover of Balda AG's operating business is better for shareholders.
On October 1, 2015, the group, which is under family ownership, had signed a binding counter-offer worth 70 m euros to acquire Balda AG's operating companies. Thereupon, the company bidding against them, the private equity company Paragon Partners, made a small improvement to their offer on October 20, 2015, trying in the process to make up for the low purchase price which remained unchanged, by means of a loan-base model according to which funds would only accrue to the shareholders 3 years later.
Christian Diemer, general partner and CEO of the Heitkamp & Thumann Group, commented as follows on the offer: "If you look closely, you can see that even the improved offer is still far from being the better one. On careful examination, the model chosen by Paragon reveals considerable risks and clear disadvantages for the shareholders."
According to Paragon's plans, shareholders of Balda AG would not only have to finance the sale of their operating business to a considerable extent themselves via a vendor loan, they would also have to bear the default risk on the loan for a period of 3 years. In addition, the funds tied up in the loan would not be available for significantly more valuable investment opportunities with better rates of interest, which entails a real destruction of value for shareholders. There would also be high start-up costs necessitated by completely rebranding, as Paragon - in contrast to Heitkamp & Thumann - would also take over the Balda brand. Heitkamp & Thumann, on the other hand, plans to integrate Balda AG's operating companies to be acquired into their existing Presspart division.
Both offers will be presented to shareholders of Balda AG for their decision at a shareholders' meeting due to take place in Hanover on November 30 and December 1, 2015.
Christian Diemer said: "I have a clear message for the shareholders of Balda AG: Use your vote and back the Heitkamp & Thumann offer in your own interests and those of Balda's employees. Our offer remains the better alternative. It gives shareholders the chance to realize a considerable gain immediately. And we are offering the employees genuine future prospects in an excellently positioned and rapidly growing family business with a long-term perspective."
About the Heitkamp & Thumann Group:
The Heitkamp & Thumann Group is a leading global partner for the development and supply of world-class precision-formed components in both metal and plastic. The family-owned group comprises more than 20 small and medium-sized enterprises located in 9 different countries and employing some 2000 people. The success of the Group and its three business divisions is based on actions guided by a long-term perspective and continuity in the area of company management.
Nils Hubert, Director HR & Public Affairs | firstname.lastname@example.org | Phone: +49 171 8 111 819