-------------------------------------------------------------------------------- Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement. --------------------------------------------------------------------------------
20.12.2006
"Ad-hoc announcement according to § 15 WpHG"
The Einhell Group plans to sell its shares of weka Holzbau GmbH in D -17034 Neubrandenburg to a fund of BPE2 Private Equity GmbH & Co. KG, administered by BPE Private Equity GmbH, Hamburg upon approval of the supervisory board.
weka Holzbau GmbH developed to a leading company in the German market for prefabricated kits made of wood for housing & gardening. The company provides entire concepts. It benefits from the trend "wood in the garden" and from the ongoing boom of the wellness branch. Einhell is sure that the sucessful business of weka Holzbau GmbH will be even more strengthened by the new partnership at long sight.
The transaction will be finished until the year's end depending on the receipt of payment of the purchase price. The group will receive cash of about 10 million Euro from this disposal. The final purchase price can first be determined exactly after the approval of the annual accounts of weka Holzbau GmbH.
This decision is taken in order to enforce the targeted group strategy of orientation towards the product groups power tools and garden equipment. The company wants to raise futher the core competence in these groups and to concentrate on the customer group of do-it-yourselfer, home constructors and hobby gardener. The aim is the expanding of the listing business at international DIY chains. Also investments in the development department and the extension of the international service network can be increased. Additionally the expansion in Eastern Europe, Asia and Latin America should be forced increasingly.
By the disposal of weka Holzbau GmbH the capital commitment will be reduced significantly and the liquidity of the Einhell group will be increased further. So an improvement of rating key figures can be reached.
From the actual point of view the Einhell group looks forward to realise sales of about 400 million Euro for the year 2007 (excluding weka Holzbau GmbH). This consolidation of the group structure should lead to a further stabilization of the profit margin.
Landau/Isar, 20th December 2006
The board of directors
end of announcement euro adhoc 20.12.2006 21:30:51 --------------------------------------------------------------------------------
ots Originaltext: Hans Einhell AG Im Internet recherchierbar: http://www.presseportal.de
Further inquiry note: Helmut Angermeier Prokurist Telefon: +49 (0)9951-942 166 Fax: +49 (0)9951-942 293 E-Mail: angermeierh@einhell.de
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