Dürr acquires majority stake in technology and engineering group Carl Schenck AG

04/04/2000

The technology group Dürr AG, Stuttgart has acquired a majority stake of 76.4% of the equity capital of Carl Schenck AG, Darmstadt, the leading international supplier of automation, diagnostic and test systems. As announced before, for a full acquisition, Dürr will soon submit a definite purchase offer for external shareholders

Thanks to the acquisition of the majority stake in Carl Schenck AG, Dürr will be able to assume a leading position as general contractor for final assembly systems in the automotive industry, and to further expand its position as supplier of production systems for engine and gear unit manufacturing.

"The acquisition is in line with the strategic goal of the Dürr Group to persistently expand its global business spectrum. In addition to its leading position in automobile paint systems the technology group Dürr is developing into a leading supplier of production facilities for the further value added steps of the automobile manufacturing process. The acquisition of Schenck opens up growth and earnings potentials in other industrial branches also. With Schenck we are able to improve out position in interesting global growth markets", says Hans Dieter Pötsch, Chairman of the Board of Management of Dürr AG. Dürr and Schenck are already today cooperating successfully on general contractor projects for final vehicle assembly.

As part of its expansion strategy, the technology group Dürr will consistently utilize the opportunities of structural change in the automotive industry, which is increasingly outsourcing product and service packages, even complete production systems, to efficient specialists. In the rapidly growing market of manufacturing support services Dürr has already assumed a strong position by acquiring the international service specialist Premier Manufacturing Support Services L.P. last year.

Also in 1999, Dürr acquired Alstom Automation, the leading French supplier of paint systems, who - apart from the automotive painting business - has a strong standing in the growing market segment of the so-called general industry.

The Dürr Group employs more than 7,200 people in over 20 countries. In 1998 Schenck achieved sales of EUR 453 m with about 3,500 people. After an expected record sales level of little short of EUR 1.2 bn in 1999, Dürr is - with the acquisitions - planning an increase to EUR 2 bn in 2001. Final figures will be published by Dürr at its financial press conference on April 17, 2000.