ElringKlinger raises Euro 120 million in capital

ERJ staff report (DS)

Dettingen/Erms, Germany -- ElringKlinger AG, has succesfully placed 5,759,990 new registered shares with institutional investors by way of an accelerated bookbuilt offering. The placement price was EUR 21.50 per share. The gross proceeds from the issuance of the new shares will be approx. EUR 123.8 million.

On Tuesday, the company announced the issue saying it plans to use the proceeds to finance growth and to optimise its financing structures. In particular, this includes:

• the partial financing of the acquisition and integration of the Static Metal Gaskets division of the Freudenberg Group
• the expansion of the new "E-Mobility" business area
• additional external growth opportunities

Last week, ElringKlinger and Freudenberg jointly announced that ElringKlinger is to buy part of the Gasket business from Freudenberg. In acquiring the Static Metal Gaskets business from the Freudenberg Group, ElringKlinger intends to further expand its international position in the area of cylinder-head gaskets and highly heat-resistant specialty gaskets for engines and exhaust systems. In the area of specialty gaskets, the overall product portfolio will be expanded to include several additional products, e.g. within the turbocharger and exhaust recirculation segment.

The company's main shareholders - the families of Walter Herwarth Lechler as well as those representing the Klaus Lechler estate - have expressed their support for the transaction.

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Press release from ElringKlinger (5 October)

Brief Press release confirms amount raised from ElringKlinger (6 October)