On October 2, Bosch signed an agreement with Behr Bircher Cellpack BBC AG, Villmergen (Switzerland) to purchase nearly 40 percent of the shares in sia Abrasives Holding AG, Frauenfeld (Switzerland). The purchase price for the stake amounts to 153.9 million Swiss francs (98 million euros). This is equivalent to a price of 515 Swiss francs per share. The transaction of the shares is subject to approval by the competition authorities.
Bosch also intends to make a public offer to all other shareholders of sia Abrasives Holding AG. Bosch will offer these shareholders 435 Swiss francs per share in cash. This represents a premium of 22.7 percent to the closing price of sia Abrasives shares on August 25, 2008. On the following day Behr Bircher Cellpack announced a takeover bid of 385 Swiss francs per share for the abrasives manufacturer. The Bosch offer is therefore 13 percent higher.
The sia Abrasives board of directors unanimously endorses the public offer by Bosch. It recommends sia Abresives’ shareholders to accept Bosch’s public offer, and to tender their sia shares to Bosch. Following the close of the public offer, Bosch will decide on the new composition of the board of directors.
With this acquisition, the Bosch Power Tools division intends to strengthen its activities in the surface technology, and to extend its existing portfolio of abrasives products. It is expected that the two companies will jointly benefit from their respective competencies in development, application, manufacturing, and marketing.
For this reason, Bosch Power Tools also intends to locate its global competence center for flexible abrasives in Frauenfeld. Accordingly, Bosch views the future prospects for the production site, employees and management as very attractive. Especially in its industrial business, the sia Abrasives brand is to be retained.
“When it comes to innovative abrasives, sia Abrasives is one of the world’s top three suppliers,” says Uwe Raschke, the Bosch board of management member responsible for the Power Tools division. “We are confident that this takeover is a strong signal for growth in an attractive market segment. Our decision to acquire sia is based to a significant extent on its employees’ and managers’ in-depth know-how in the field of surface treatment.”
Peter A. Schifferle, the president of the sia board of directors, commented as follows on the planned acquisition of sia Abrasives and its integration into the Bosch Power Tools division: “Sia and Bosch have been working together closely for many years, both in development and in marketing. By joining forces with Bosch, sia can look forward to the great future potential of new addressable markets and enhanced sales growth. Bosch is the ideal new owner of sia.”
Bosch acknowledges that Giorgio Behr presented a sound entrepreneurial solution for sia Abrasives and pays great respect to him for his decision to waive his own plans, making the present solution possible.
About sia Abrasives:
The sia Group develops, manufactures, and markets complete, customized abrasive systems for the treatment of surfaces of all kinds. In fiscal 2007, sia Abrasives generated global sales of just under 300 million Swiss francs (roughly 190 million euros), and employed some 1,150 employees.
About Bosch Power Tools:
With power tools, accessories, garden tools, and measuring technology, the Bosch Power Tools division generated sales of 3.1 billion euros in 2007. Of this total, 90 percent was generated outside Germany. The division employs a global workforce of approximately 16,000 associates.
