SIGNATURE OF AN AGREEMENT FOR THE ACQUISITION OF WMF

The WMF Group, which was founded in 1853, specialises in 3 product lines: professional coffee machines, small domestic equipment (cookware and small domestic appliances) and equipment for the hotel industry. Over the years, it has established solid positions:

• in the professional coffee market, where it is the undisputable world leader with a market share of 28%, far ahead of the number 2;
• in cookware, where WMF is the clear leader in Germany, with 20% of the market.

The WMF Group posted revenue of €1.1 billion in 2015, up by 4.3% and an adjusted EBITDA at€118 million in 2015.

WMF has 8 production sites across the world: 4 in Germany, 1 in Switzerland, 1 in the Czech Republic, 1 in China and 1 in India. It has a multi-channel distribution strategy and notably a large company-owned retail network. It employs 5,700 people in 16 countries, of which 3,800 are in Germany.

This structuring acquisition will allow the Group to:

• acquire a solid worldwide leadership in the very attractive professional coffee machines market, which is characterised by strong growth, high profitability and large recurring sales, due to a significant proportion of service activities;
• strengthen considerably its position in cookware, becoming the number 1 in Germany, notably via its high-end stainless steel product offering;
• accelerate its development in the key market of kitchen ustensils and accessories, continuing on from the acquisition of EMSA, to reach sales of more than €350 million;
• consolidate its brand portfolio with strong new brands – the iconic WMF as well as Schaerer, Silit, Kaiser and HEPP;
• access a network of 200 own-retail shops in Germany, a great tool to promote its image and generate revenues.

The deal will be submitted to the relevant competition authorities and is expected to be finalised before the enf of 2016.