IWKA PACKAGING companies, that develop, build and install packaging machines for the dairy sector, pharmaceutical, cosmetics companies and the food industry, to be sold.
The IWKA Group's Executive Board has completed its analysis regarding the possibility of selling the Packaging division (IWKA Packaging GmbH) and has decided to sell the Packaging division's companies.
The analysis process contained a particularly comprehensive and critical appraisal of the division's development potential and was aimed at exploring the best possibilities and the best owner that would further strengthen the competitiveness of the companies in the division.
On the basis of the completed analysis, the Executive Board has decided to sell the Packaging division's companies. The Supervisory Board approved this decision on March 27, 2007. The Executive Board then decided that, subject to approval by the relevant trust authorities, the companies would be sold to funds of the Berlin-based investment company Odewald & Compagnie.
The sale of the companies to Odewald & Compagnie also takes the Packaging division's employees into consideration, offering the employees of the German companies, for example, a location guarantee over several years and a promise that there will be no operationally based contract terminations.
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.
Gerhard Wiedemann, CEO of IWKA, commented on the decision as follows: "Our strategic considerations are focused on developing growth potential in the systems and robotics segments of our Group. That is to say, the sale will release resources and strengths that we need and will use for the development of innovative robot applications and system technologies."
IWKA's Packaging Technology Division plans and builds complete packaging lines for forming, filling, sealing and commissioning for customers in the pharmaceutical, cosmetics, food and dairy industries. The range of products and services, from IWKA PACKAGING companies, for all industries includes packaging machines for primary, secondary and tertiary packaging - from packaging manufacture, filling and sealing to cartoning and palletizing.
The Packaging division comprises more than 20 companies in Europe, North and South America and Asia. It had sales of over EUR 400 million and more than 2,500 employees in 2006.
After selling the Packaging division, the group will consist of the two KUKA divisions Systems and Robotics. The Executive and Supervisory Boards will therefore table a resolution at the Annual General Meeting on May 16, 2007, proposing that the name "IWKA Aktiengesellschaft" be changed to "KUKA Aktiengesellschaft" and the headquarters be relocated to Augsburg.
The IWKA Group is an international network of about 70 mid-sized companies - with a clear focus on automobile and consumer goods industry markets. Find information about IWKA AG.
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