Linde sells its forklift division KION Group to KKR/Goldman Sachs
Kohlberg Kravis Roberts & Co./ Goldman Sachs Capital Partners acquire
the division for 4 billion euro
Continuity of corporate strategy assured
IPO as medium-term objective
Wiesbaden, 5 November 2006 - Linde AG, Wiesbaden, has completed its
review of the strategic options for its forklift division KION Group.
The company has been sold to a consortium comprising the financial
investors Kohlberg Kravis Roberts & Co. (KKR) and Goldman Sachs
Capital Partners at a price of 4 billion euro. A contract has
accordingly been signed today. The validity of the contract will be
dependent on approval being received from the appropriate competition
authorities.
The enterprise value of 4 billion euro consists of 3.6 billion net
equity value plus 400 million euro of net financial liabilities
assumed, i.e. the balance of pension obligations, net lease
obligations and net liquidity. KKR/Goldman Sachs will honour all the
agreements on safeguarding locations made by the Linde Executive
Board with employee representatives in summer 2005.
"We are utterly convinced that KKR and Goldman Sachs have the right
overall concept for the group" explained Professor Wolfgang Reitzle,
President of the Executive Board of Linde AG. "After carefully
examining all the options, we have chosen a strong and strategically-
oriented partner, who will facilitate a seamless transition and
enable KION to continue on its path towards earnings-based growth."
Johannes Huth, the Head of European Operations at KKR, and Alexander
Dibelius, the Head of Central and Eastern Europe at Goldman Sachs,
declared "KION is an extremely well-positioned company in the
international industrial truck industry which has excellent
prospects. Together with KION's effective management team and
highly-qualified employees, we will seek to tap the undoubted
potential for growth and earnings in the company and to achieve
sustainable increases in its value. In the medium term, our objective
is an IPO."
Hubertus Krossa, Chairman of the KION Management Board, said "I am
delighted that we have found strong partners in KKR and Goldman Sachs
who are completely behind KION's industrial concept. Together, and
with renewed vigour, we will continue on the path towards growth we
have taken so far."
The KION Group, which the Linde Group established as a new, legally
independent umbrella company for its three forklift truck and
industrial equipment brands, Linde, STILL and OM, currently has more
than 20,000 employees. In the 2005 financial year, the division
achieved sales of around 3.6 billion euro. KION is a market leader in
Europe and stands for the highest level of technological competence.
For further information:
Press
Uwe Wolfinger
Telephone: +49.611.770-264
Mobile: +49.163.770 7130
Investor Relations
Thomas Eisenlohr
Telephone: +49.611.770-610
Mobile: +49.160.989 55191
Kohlberg Kravis Roberts & Co.
Alexander Geiser
Telephone: +49.69.92 18 74-74
Mobile: +49 173 2121 371
Goldman Sachs Capital Partners
Christian Kroos
Telephone: +49.89.898 396 72
Mobile: +49 172 684 9321
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