SOURCE: BAVARIA Industriekapital AG

December 27, 2007 12:06 ET

BAVARIA Industriekapital AG Signs an Agreement to Take Over Elcoteq Communications Technology GmbH

MÜNCHEN, GERMANY--(Marketwire - December 27, 2007) - BAVARIA Industriekapital AG signs an agreement to take over Elcoteq Communications Technology GmbH Munich: BAVARIA Industriekapital AG takes over Elcoteq Communications Technology GmbH in Offenburg, Germany. Elcoteq Communications Technology GmbH is a fully owned subsidiary belonging to the Elcoteq group, the largest European electronics manufacturing services (EMS) company. The closing of the agreement is subject to an approval by the German competition authority. The parties signed also an agreement under which the company will continue to deliver key parts to Elcoteq group.

"This takeover confirms once again BAVARIA Industriekapital AG's standing as an outsourcing partner for the manufacturing of important components. We see a lot of potential to enhance our position in contract manufacturing through further acquisitions," explains CEO Reimar Scholz.

"We are pleased to enter into this agreement with a German buyer that will continue the company's operations in Offenburg. The company's role in Elcoteq's global service network has diminished due to strategic changes in market demand in Elcoteq's clientele and this is why Elcoteq concluded that the company can be better developed under new ownership," says Mr. Harri Ojala, Vice President, Corporate Affairs at Elcoteq SE.

Elcoteq SE is a leading electronics manufacturing services (EMS) company with original design manufacturing (ODM) capabilities in the communications technology field. Elcoteq provides global end-to-end solutions consisting of product development, NPI, manufacturing, supply chain management, and after-sales services for the whole lifecycle of its customers' products. These products include terminal products such as mobile phones and set-top boxes as well as communications network equipment such as base-stations, tower-top amplifiers, and microwave systems. The company operates in 16 countries on four continents and employs some 25,000 people. Elcoteq's consolidated net sales for 2006 totaled 4.3 billion euros. Elcoteq SE is listed on the Helsinki Stock Exchange. For more information visit the Elcoteq website at www.elcoteq.com.

BAVARIA Industriekapital AG's 2006 revenues were EUR 333 million, with an EBITDA of EUR 51 million. The company is listed in the Entry Standard on the Frankfurt Stock Exchange. Headquartered in Munich, the group invests in companies with strong market positions and a potential to improve profits.

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Contact Information

  • For further questions, please contact:
    BAVARIA Industriekapital AG
    Mr. Steffen Görig
    steffen.goerig@baikap.de
    Tel: +49 (0)178 509 7162