DGAP-News: Gesco AG / Key word(s): Disposal/Forecast 
GESCO AG closes mobility technology segment, undertakes largest portfolio 
adjustment in company history and renews outlook for financial year 2020 
 
2020-12-21 / 21:38 
The issuer is solely responsible for the content of this announcement. 
 
· GESCO AG divests six subsidiaries 
 
· Milestone in implementation of NEXT LEVEL 
 
· Improved profitability, strengthened balance sheet 
 
· Outlook for year as a whole renewed 
 
· Focus on acquisitions 
 
_Wuppertal, 21 December 2020_ - GESCO AG has concluded a contract today on 
the sale of a group of six subsidiaries. The acquirer is a fund of Evoco AG, 
Zurich, an investor specialised in the acquisition and development of 
medium-sized portfolios. The transaction constitutes the closing of GESCO's 
mobility technology segment as well as the largest portfolio adjustment in 
company history. The transaction is carried out within the scope of the NEXT 
LEVEL strategy and aims at making the portfolio more profitable, robust and 
guaranteeing future viability. 
 
The four companies that make up the mobility technology segment as well as 
Frank Walz- und Schmiedetechnik GmbH and C.F.K. CNC-Fertigungstechnik 
Kriftel GmbH will be divested. The closing of the transaction is expected to 
take place for five of the six companies shortly after the signing of the 
contract; for Paul Beier GmbH & Co. KG from the mobility technology segment, 
the closing is subject to the granting of regulatory approval. 
 
Based on the figures for financial year 2020, GESCO will thereby dispose of 
roughly &euro 90 million in Group sales and some &euro -15 million in Group 
EBIT, which consists of an operating loss of around &euro -1.5 million and 
&euro -13.5 million in impairment losses from impairment tests already 
carried out in the summer of 2020. 
 
The purchase price amounts to &euro 27 million and is accompanied by a net 
cash inflow of &euro 15 million, which is partially earmarked for reduction 
of liabilities and partially for acquisitions. In addition, the buyer 
assumes net liabilities, pension obligations and lease liabilities of in 
total approximately &euro 28 million. 
 
Taking into account the transaction and better-than-expected operating 
business, the outlook for continuing operations for 2020 as a whole has been 
renewed. The Executive Board now expects Group sales of approximately &euro 
400 million (previously: exceeding &euro 450 million _including_ the 
companies which have been sold). In terms of Group net income for the year 
after minority interest before impairment losses, the Executive Board had 
expected to at least break even; taking into account the impairment losses, 
this corresponded to a figure at or exceeding &euro -13.5 million. Upon 
completion of the transaction, the Executive Board now expects Group net 
income for the year after minority interest from continuing operations of 
roughly &euro 5 million. 
 
GESCO CFO Kerstin Müller-Kirchhofs: "We are divesting ourselves of 
low-margin sales and thereby increasing the profitability of the Group. In 
doing so, we will be significantly streamlining the balance sheet, reducing 
liabilities and strengthening the equity ratio. In combination with adequate 
liquid assets, we are well positioned for both investments in internal 
growth as well as external Group expansion through acquisitions." 
 
GESCO CEO Ralph Rumberg: "GESCO will remain a long-term investor, we always 
purchase companies with the intention of holding and developing them in the 
long term. At the same time, we have to have the freedom to divest ourselves 
of subsidiaries for strategic reasons and in exceptional cases, as we have 
also done in the past. In Evoco, we were able to find a responsible investor 
with an entrepreneurial approach. The sale of the mobility segment is a 
milestone in the implementation of NEXT LEVEL. Upon completion of this 
complex and demanding transaction, we are now fully focusing our management 
capacity and financial resources on the profitable development of the 
existing portfolio as well as on the expansion of the Group through the 
further acquisition of attractive SMEs." 
 
_The central information of this press release was published today in the 
form of an ad hoc announcement._ 
 
*About GESCO * 
GESCO AG is an industrial group made up of market and technology leading 
companies in the capital goods industry with a focus on production process 
technology, resource technology, as well as healthcare and infrastructure 
technology. As a stock company listed in the Prime Standard, GESCO AG offers 
private and institutional investors access to a portfolio of hidden 
champions among Germany's industrial SMEs. 
 
Investor Relations - Oliver Vollbrecht 
Phone: +49 202 24820-18 - Fax: +49 202 24820-49 
E-mail: info@gesco.de - Website: www.gesco.de 
 
2020-12-21 Dissemination of a Corporate News, transmitted by DGAP - a 
service of EQS Group AG. 
The issuer is solely responsible for the content of this announcement. 
 
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Archive at www.dgap.de 
Language:    English 
Company:     Gesco AG 
             Johannisberg 7 
             42103 Wuppertal 
             Germany 
Phone:       +49 (0)202 248200 
Fax:         +49 (0)202 2482049 
E-mail:      info@gesco.de 
Internet:    www.gesco.de 
ISIN:        DE000A1K0201 
WKN:         A1K020 
Listed:      Regulated Market in Frankfurt (Prime Standard); Regulated 
             Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, 
             Munich, Stuttgart, Tradegate Exchange 
EQS News ID: 1156784 
 
End of News DGAP News Service 
 
1156784 2020-12-21

(END) Dow Jones Newswires

December 21, 2020 15:38 ET (20:38 GMT)