HMS Group completes an acquisition of Apollo Goessnitz GmbH
Moscow, Russia – August 9, 2012 – HMS Group (LSE: HMSG), the leading pump manufacturer and provider of flow control solutions and related services in Russia and the CIS, announces it has closed on the acquisition of Apollo Goessnitz GmbH and received a full title on 75% of its share capital. Apollo Goessnitz GmbH is the worldwide operating manufacturer of centrifugal pumps and system equipment, located in Goessnitz (Thuringia), Germany.
HMS Group paid EUR 25 mn for 75% of the share capital. The transaction has been financed with 2-year bank credit facility. On the completion of the transaction estimated Net debt to EBITDA (LTM) ratio of HMS Group stood at around 2.0 that is well below internal covenant set at 2.5.
The main products of Apollo Goessnitz GmbH (Apollo) are customized centrifugal pumps, related spare parts and integrated pump-based systems that comply with API (American Petroleum Institute) and DIN (German Industrial Standards), which are primarily used in oil and gas sector, both for offshore and onshore applications, in thermal power generation as well as other industries.
See previous press releases regarding the transaction dated July 20, 2012:
See the presentation of the transaction:
Apollo Goessnitz is the manufacturer of centrifugal pumps and system equipment used in oil refining, gas processing, chemical and petrochemical industries, power generation and water utilities as well as offshore production and liquid gas transportation. Production of Apollo Goessnitz is made according to API 610 (American Petroleum Institue), DIN (Deutsches Institut fuer Normung) and ISO (International Standards Organizations). Apollo has two business divisions “Pump division” (pump production and service) and “Engineering systems division” (projecting, design and manufacture of plants for liquid fuels, process plants, plants for water supply, automation systems and electrical equipment). In 2011, Apollo Goessnitz sales were EUR 20.3 mn, net debt of EUR 1.6 mn and net profit of EUR 1.3 mn.
HMS Group is the leading pump manufacturer and provider of flow control solutions and related services to the oil and gas, nuclear and thermal power generation and water utilities sectors in Russia and the CIS. The HMS Group’s products are mission-critical elements of projects across a diverse range of industries. It has participated in a number of large-scale infrastructure projects in Russia, including providing pumps and modular equipment to the Vankor oil field and pumping stations on recent trunk pipelines projects linking Russia’s core oil producing areas to export ports on the Pacific Ocean and Baltic Sea. The Group reported revenues of RUB 7.3 billion, adjusted EBITDA of RUB 1.4 billion and profit of RUB 485 million for the 3 months ended March 31, 2012. The HMS Group’s global depositary receipts (“GDRs”) are listed under the symbol “HMSG” on the London Stock Exchange.
For further information, please contact:
Investor Relations: Sergey Klinkov, Head of Investor Relations
Phone: +7 (495) 730-6601 x 1302, Klinkov@hms.ru
Media Relations: Nozima Karimova, Head of Press Service
Phone: +7 (495) 730-6610, Karimova@hms.ru
The information contained herein has been prepared using information available to HMS Hydraulic Machines & Systems Group Plc (“HMS Group” or “HMS” or “Group” or “Company”) at the time of preparation of the presentation. External or other factors may have impacted on the business of HMS Group and the content of this presentation, since its preparation. In addition all relevant information about HMS Group may not be included in this presentation. No representation or warranty, expressed or implied, is made as to the accuracy, completeness or reliability of the information.
Any forward looking information herein has been prepared on the basis of a number of assumptions which may prove to be incorrect. Forward looking statements, by the nature, involve risk and uncertainty and HMS Group cautions that actual results may differ materially from those expressed or implied in such statements. Reference should be made to the most recent Annual Report for a description of the major risk factors. This presentation should not be relied upon as a recommendation or forecast by HMS Group, which does not undertake an obligation to release any revision to these statements.
This presentation does not constitute or form part of any advertisement of securities, any offer or invitation to sell or issue or any solicitation of any offer to purchase or subscribe for, any shares in HMS Group, nor shall it or any part of it nor the fact of its presentation or distribution form the basis of, or be relied on in connection with, any contract or investment decision.