15th Oct 2007 13:51
Today, Sartorius AG (FWB:SRT) signed an agreement with the Britishtechnology group Smiths (LSE:SMIN) to sell German-based SartoriusBearing Technology GmbH to this Group. According to the agreement, theSmiths Group will retroactively purchase all of the shares in thehydrodynamic bearing company effective September 1, 2007, subject tousual approval procedures, such as antitrust clearance. The purchaseprice is approximately 20 million euros. Sartorius Bearing TechnologyGmbH is to be integrated into the John Crane business of Smiths, whichfocuses on the design and manufacture of seals. John Crane will takeon all Sartorius Bearing Technology employees numbering around 100persons at the Goettingen location. The transaction is expected to beclosed within approximately the next six weeks. £ "We carefully weighed all options for the future and ultimatelychose the best prospects for employees, customers and shareholders,"said Sartorius Executive Board Chairman and CEO Dr. Joachim Kreuzburgabout the transaction. "Our successful hydrodynamic bearings businesswill be optimally promoted in John Crane and will gain the opportunityto rapidly take the necessary steps for globalization. This would nothave been possible in this way for the business as a rather marginalactivity at Sartorius." As Kreuzburg said further, in defining itsportfolio, the Sartorius Group will continue to focus on its two coreareas of activity, biotechnology and mechatronics, as well as on itsmajor groups of customers, the biopharmaceutical, chemical and foodindustries. In both areas, the Group is on track to acceleratesustainable growth. He referred in this context to the acquisitions ofOmnimark, Toha Plast and Stedim Biosystems the Sartorius Grouprecently made, the expansion of R&D, the substantial extension of theplant facility in China as well as to the numerous new R&D and salesand distribution alliances. £ For the financial year 2007, Sartorius Bearing TechnologyGmbH expects to achieve sales revenue of a good 15 million euros alongwith a double-digit EBIT margin. Hydrodynamic bearings are used bycustomers from the energy sector and plant and system engineeringfield predominantly in high-speed applications, such as turbines,compressors and industrial pumps. The company's manufacturingoperations for hydrodynamic bearings are based exclusively inGoettingen, Germany. So far, its business has been primarily inGermany and Western Europe. Sartorius spun off its hydrodynamicbearings business in 2005 as a separate company (GmbH). In 2006, theexpanding business relocated to an independent facility. £ Current image files: £ The production facility of Sartorius Bearing Technology GmbH inGoettingen: £ www.sartorius.com/fileadmin/presse/Sartorius_Bearing_Technology_Production.jpg £ (Due to its length, this URL may need to be copied/pasted intoyour Internet browser's address field. Remove the extra space if oneexists.) £ Hydrodynamic bearings for use in turbomachine engineering: £ www.sartorius.com/fileadmin/presse/Sartorius_Bearing_Technology_Product.jpg £ Dr. Joachim Kreuzburg, Sartorius CEO and Executive Board Chairman: £ www.sartorius.com/uploads/media/Dr_Kreuzburg.jpg £ This press release contains statements about the futuredevelopment of the Sartorius Group. We cannot guarantee that thecontent of these statements will actually apply because thesestatements are based upon assumptions and estimates that harborcertain risks and uncertainties. £ This is a translation of the original German-language pressrelease. Sartorius shall not assume any liability for the correctnessof this translation. The original German press release is the legallybinding version. Furthermore, Sartorius reserves the right not to beresponsible for the topicality, correctness, completeness or qualityof the information provided. Liability claims regarding damage causedby the use of any information provided, including any kind ofinformation which is incomplete or incorrect, will therefore berejected. £ A profile of Sartorius £ The Sartorius Group is an internationally leading laboratory andprocess technology provider covering the segments of biotechnology andmechatronics. In 2006, the technology group earned sales revenue of521.1 million euros. The Goettingen-based company founded in 1870currently employs approximately 4,500 persons. Its biotechnologysegment covers majors areas of focus on fermentation, filtration,purification, fluid management and laboratory applications. For themechatronics segment in particular, the company manufactures equipmentand systems featuring weighing, measurement and automation technologyfor laboratory and industrial applications, as well as hydrodynamicbearings. Key Sartorius customers are from the pharmaceutical,chemical and food and beverage industries and from numerous researchand educational institutes of the public sector. Sartorius has its ownproduction facilities in Europe, Asia and America as well as salessubsidiaries and local commercial agencies in more than 110 countries.For more information visit www.sartorius.com. £ A profile of Smiths Group £ Smiths is a global technology company listed on the London StockExchange. A world leader in the practical application of advancedtechnologies, Smiths Group delivers products and services for thethreat & contraband detection, medical devices, energy andcommunications markets worldwide. Our products and services make theworld safer, healthier and more productive. Smiths Group employs morethan 20,000 people in over 50 countries. For more information visitwww.smiths.com. £ A profile of John Crane £ John Crane, a Smiths Group business, designs and manufacturesseals and associated products mainly for the oil & gas, chemical,pharmaceutical, pulp & paper and mining sectors. Since beingestablished over 80 years ago John Crane has become a leader in itsfield. John Crane's products are a globally recognised and trustedbrand by the oil and gas industry. The John Crane business has 20manufacturing sites around the world and more than 6,000 employees.For further information visit www.johncrane.com. Copyright Business Wire 2007Related Shares:
Smiths Group