Sale of Packaging division & Name change for IWKA Aktiengesellschaft
The company's Executive Board has completed its analysis regarding the possibility of selling the Packaging division and has decided to sell the Packaging division's companies. The Supervisory Board approved the decision on March 27, 2007.
March 27, 2007
The sale will generate a book profit. As a result, the IWKA Group expects an earnings contribution from discontinued operations of at least about EUR 50 million for the 2007 business year. The enterprise value of the Packaging division on which the sale is based is approx. EUR 240 million. In addition, a substantially utilized property belonging to the Packaging division will be sold at a price of EUR 17 million. The total amount of the transaction is therefore approx. EUR 255 million.
The Packaging division comprises more than 20 companies located in Europe, North and South America and Asia. It had sales of approx. EUR 400 million and more than 2,500 employees in 2006.
The Executive Board and the Supervisory Board have also decided to table a resolution to amend the articles of association at the annual general meeting of the company on May 16, 2007, proposing that the name "IWKA Aktiengesellschaft" be changed to "KUKA Aktiengesellschaft".
Karlsruhe, March 27, 2007
The Executive Board