Further strategic portfolio streamlining
IWKA sells Balg- und Kompensatoren- Technologie GmbH to Odewald & Compagnie
December 22, 2005
IWKA has taken a further important step toward focusing on its core businesses. As part of its previously announced portfolio streamlining program, IWKA has sold another non-core business. On December 22, 2005, the IWKA Group sold former Process Technology Division company IWKA Balg- und Kompensatoren- Technologie GmbH and its subsidiaries (Flexible Solutions Group), with economic effect as of December 31, 2005/January 1, 2006. The deal was signed with a group company of financial investor Odewald & Compagnie Gesellschaft für Beteiligungen mbH, Berlin, and is subject to approval by the relevant antitrust authorities. The parties have agreed not to disclose the conditions of the sale. The revenues from the sale will substantially reduce the IWKA Group's net debt in 2006.
Odewald & Compagnie is one of Germany's leading independent private equity investors and manages assets of about EUR 500 million. Founded in 1997, the company is headquartered in Berlin and invests in medium-size established and growth companies in German-speaking countries. Investors in Odewald & Compagnie funds include institutional German and international investors, as well as wealth management companies and private investors.
Flexible Solutions Group (FSG) is one of the world's leading manufacturers of flexible, mechanical components for exhaust systems and engine management. Customers include the automotive industry and its subsuppliers, as well as general industry. FSG supplies metal bellows, metal hoses and expansion joints to power technology companies, the plant engineering sector, as well the aerospace, HVAC industries and general purpose piping with control elements, as well as recirculation systems for exhaust gas and expansion fittings. Flexible Solutions Group, which has over 1,000 employees, is expected to generate sales revenues of nearly EUR 150 million in 2005.