Meyer Burger divests its non-PV related diamond wire production business to Thermocompact Group

 

Press Release

Thun, 13 November 2017

 

 

Meyer Burger divests its non-PV related diamond wire production business to Thermocompact Group

 

 

On 1 March 2017, Meyer Burger Technology Ltd (SIX Swiss Exchange: MBTN) announced its decision to discontinue the proprietary wire production for diamond wire at Diamond Materials Tech Inc. (DMT) in Colorado Springs, USA. Meyer Burger has signed a binding asset purchase agreement with Thermocompact Group now, which will acquire the remaining DMT business for an amount of about USD 6 million in cash. The closing of the transaction is expected by mid-December 2017. As a result of this transaction, about 25 employees will be transferred to Thermocompact Group. The diamond wire business previously serving PV-related applications has already been closed by Meyer Burger during the first half-year of 2017.

 

Thermocompact Group has dedicated expertise in precious metals coating, high technology wire for EDM applications and fixed abrasive highly technical engineered wires for photovoltaic, electronic and LED industries. The company serves various fields of industries such as automotive, aeronautics, space, connectors, medical and precision cutting.  www.thermocompact.com

 

In 2013, Meyer Burger changed its financial reporting from IFRS to Swiss GAAP FER. In accordance with Swiss GAAP FER 30, Meyer Burger decided to offset goodwill resulting from acquisitions against equity. In case of a divestment of an entity, Swiss GAAP FER accounting standards require the recycling of the associated goodwill through the income statement. Accordingly, Meyer Burger expects to realize an extraordinary non-cash expense of USD 22.5 million in connection with the goodwill recycling from the divestment of the DMT business. In the income statement, this expense will be included in the Extraordinary result line above Earnings before taxes. Meyer Burger’s equity will not be affected by the goodwill recycling expense and the goodwill recycling itself does not impact operations.

 

Hans Brändle, CEO at Meyer Burger: “As we had already announced the discontinuation of our diamond wire business in Colorado Springs in March 2017, we are pleased that we found a good industrial solution for the non-PV oriented business now, with the sale of these activities to Thermocompact. With this divestment, we have completed the discontinuation of our activities in diamond wire production in Colorado Springs and were able to extract some value and cash flow from the residual operations.”

 

 

 

Contacts:

Ingrid Carstensen

Head of Corporate Communications

Phone: +41 (0)33 221 28 34

ingrid.carstensen@meyerburger.com

 

Daniel Eicher

c/o Tolxdorff & Eicher Consulting

Phone: +41 (0)33 221 28 83

daniel.eicher@meyerburger.com

 

THIS PRESS RELEASE IS NOT BEING ISSUED IN THE UNITED STATES OF AMERICA AND SHOULD NOT BE DISTRIBUTED TO U.S. PERSONS OR PUBLICATIONS WITH A GENERAL CIRCULATION IN THE UNITED STATES. THIS PRESS RELEASE DOES NOT CONSTITUTE AN OFFER OR INVITATION TO SUBSCRIBE FOR, EXCHANGE OR PURCHASE ANY SECURITIES. IN ADDITION, THE SECURITIES OF MEYER BURGER TECHNOLOGY LTD HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD OR DELIVERED WITHIN THE UNITED STATES OR TO U.S. PERSONS ABSENT REGISTRATION UNDER OR AN APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE UNITED STATES SECURITIES LAWS.

 

This press release may contain “forward-looking statements”, such as guidance, expectations, plans, intentions, or strategies regarding the future. These forward-looking statements are subject to risks and uncertainties. The reader is cautioned that actual future results may differ from those expressed in or implied by the statements, which constitute projections of possible developments. All forward-looking statements included in this press release are based on data available to Meyer Burger Technology Ltd as of the date that this press release is published. The Company does not undertake any obligation to update any forward-looking statements contained in this press release as a result of new information, future events or otherwise.