In future, the Datwyler Group will focus on the fast-growing, high-margin Sealing business for attractive global markets and will divest the two distribution companies Distrelec and Nedis. Based on recognised core competen- cies, Datwyler has become a valued development partner for high-quality, system-critical sealing components in the Health Care and Automotive industries and beyond.
Divestment of Distrelec and Nedis
On 23 December 2019, the Datwyler Group signed a contract with German firm Aurelius for the sale of all entities of the daughter companies Distrelec and Nedis. As distributors of electronic components, Distrelec and Nedis generated sales of some CHF 300 million in 2018 with some 850 employees. The deal is due to be concluded in the first quarter of 2020 subject to the fulfilment of the usual conditions for completion. The parties have agreed not to disclose details of the transaction. Aurelius has many years of investment and management experience and owns several distribution companies. As an active investor with a long-term investment horizon, Aurelius specialises in spin-offs from international groups. For the sale of Reichelt, Datwyler takes the time to evaluate further options to optimise value.
Liquidity and assets largely unaffected by the divestment loss
The divestment of Distrelec and Nedis will result in a loss for the Datwyler Group of some CHF 670 million, which will have no impact on liquidity. This amount comprises mainly goodwill and the realisation of the cumulative currency translation differences of the foreign companies disposed of. At over 50%, the equity ratio will still be very solid after the transaction has been concluded. Datwyler therefore has excellent financial resources for implementing the growth strategy defined.
Further information on the divestment and refocusing of the Group will be announced in a conference call on Tuesday, 7 January 2020 at 11.00 a.m. (Central European Time).
How to join the conference call:
Please register early before the date by clicking on this link. You will then receive an email with your dial-in details to easily and quickly access the conference.
Please join the call 5 to 10 minutes before the start.
Should you experience any technical issues accessing the call, please dial the following support number: +41 (0)58 310 5000
The English presentation slides will be available for downloading from our website www.datwyler.com at the link Investors > Publications > Presentations