Emak SpA : The controlled company Comet S.p.A. acquires the control of Mexican society Surtidora de Insumos Agroindustriales

Press release

Emak Group

The controlled company Comet S.p.A. acquires the control of Mexican society  Surtidora de Insumos Agroindustriales

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Bagnolo in Piano (RE), 10 January 2014 - Emak S.p.A. announces that the controlled company Comet S.p.A has acquired the control of the Mexican company Surtidora de Insumos Agroindustriales S de RL de CV (herein after called Siagro), with registered office in in Guadalajara, Mexico, bringing its stake to 85% of the share capital from the previous 30%. The additional share of 55% was purchased by the family of the founder and chief executive officer of the company, that following the operation will remain involved as a minority shareholder and responsible for operational management.

Siagro, a company established in 2010 and of which Comet has been a shareholder and has shared the management since the outset, engages in the commercialization on the local market of products for agriculture, and in particular pumps. In 2013 the company achieved a sales turnover of €1.2 million, with an EBITDA of around 15% of sales. Thanks to the contribution from the sellers of a well-established distribution network in the industry, that joins the one in the field of agriculture, it is possible to foresee that Siagro will reach already in 2014 a turnover of approximately €2.5 million and an EBITDA of approximately 19% of sales.

The transaction is part of the growth strategy of the Emak Group, as it will enhance its overall presence in an important and with significant room for development market as the Mexican.

The consideration for the transaction amounts to € 1 million: € 0.7 million, as the fixed part, have already been fully paid; € 0.3 million, as part of the variable, will be paid in 2016 based on the results obtained in the next two years.
The collateral agreements provide for a call option in favour of Comet to purchase the remaining 15% of the capital at the end of the 5th year following the closing date, at a price linked to the trend in EBITDA.

The acquisition was made with the financial means Comet already has.

The inclusion of the company in the scope of consolidation will take place with effect from 01.01.2014.

The operation doesn't reach the he conditions of materiality provided for by art. 71, Consob Issuers' Regulations, by resolution 11971 of 14/5/1999.

For additional information:
Mr. Andrea La Fata
Investor Relation Office
Phone [phone]; Fax [phone]
[e-mail]; www.emak.it

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Emak is one of the main global players in the production and distribution of machines, components and accessories for gardening,
agriculture, forestry and industry such as chainsaws, brushcutters, lawnmowers, garden tractors, motor hoes, power cutters, high pressure pumps, pressure washers. The Group distributes its products through commercial branches and a network of distributors and specialized dealers in more than 80 countries in all five continents. In 2012 Emak Group realized a total turnover of € 354.8 million and counted more than 1,500 employees. .The parent company Emak S.p.A. has obtained the following certifications: Quality ISO 9001, Ethical SA 8000 and Environmental ISO 14001.

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