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SURTECO SE: Acquisition of the Probos Group

Buttenwiesen-Pfaffenhofen, 24 June 2017 - SURTECO SE, one of the world's leading manufacturers of decorative surface materials and producer of technical extrusions based on plastics, is acquiring all shares in Global Abbasi S.L. in Spain, the ultimate parent company of the Probos Group. A sale and purchase agreement was entered into today. The acquisition is expected to be closed within the next weeks. An approval by merger control authorities is not required. The purchase price (Enterprise Value) amounts to EUR 99 million cash free/debt free. SURTECO is financing the transaction by borrowed funds.

Similar to SURTECO's subsidiary Döllken-Kunststoffverarbeitung GmbH and its domestic and foreign production sites, the Probos Group has specialized in the production and sales of edgebandings based on plastic. In 2016, the company generated sales of EUR 66.5 million with approximately 470 employees and earnings before financial result, income tax, amortization and depreciation (EBITDA) of around EUR 11 million (EBITDA margin: 16.6 %) according to Portuguese GAAP. It comprises the production companies Probos Plásticos S.A. in Portugal and Proadec Brasil Ltda. in Brazil as well as the sales companies Edging Plus Inc. in the United States, Proadec UK Ltd. in the United Kingdom, Proadec Deutschland GmbH in Germany and Chapacinta S.A. de C.V. in Mexico.

By this takeover, the SURTECO Group (2016: sales of EUR 639.8 million; EBITDA of EUR 74.3 million; EBIT of EUR 40.9 million; approximately 2,800 employees) intends to increase its product competence in the area of plastic based edgebandings and to expand the geographic sales areas. Up to date, SURTECO has not yet been present with own production sites in Brazil and on the Iberian Peninsula.