Gerry Weber International AG / Key word(s): Acquisition 22.12.2014 17:21 Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Ad-hoc announcement pursuant to § 15 WpHG GERRY WEBER acquires Hallhuber (Halle/Westphalia, 22 December 2014) GERRY WEBER International AG has agreed to acquire all shares in Munich-based fashion company Hallhuber from private equity firm Change Capital Partners LLP. The acquisition of this fashion manufacturer and retailer continues GERRY WEBER's growth strategy and pushes ahead the verticalisation of its business model. Hallhuber enables GERRY WEBER to move into an attractive segment of the womens fashion market targeting a younger clientele, namely trend-oriented women in their mid-twenties and older. Hallhuber with its two "Hallhuber" and "Hallhuber Donna" brands will be managed as stand-alone brands within the GERRY WEBER Group. Given that Hallhuber will benefit from GERRY WEBER's operational expertise in the areas of sourcing, international retail expansion and logistics, GERRY WEBER expects this acquisition not only to deliver an attractive contribution to Group profitability but also to accelerate the company's growth. Brands and distribution channels GERRY WEBER and TAIFUN, the two existing brands managed by the fashion and lifestyle company based in Halle/Westphalia, address female customers in the mid-thirties and older who have a sure sense of style and are looking for feminine and high-quality garments. This portfolio is rounded off by the well-established SAMOON brand for plus-sized womenswear without a defined age group focus. By expanding the brand portfolio through the addition of the two complementary Hallhuber brands, the GERRY WEBER Group will gain access to a new and younger target market of women with a predominantly urban and trendy orientation. Hallhuber Hallhuber generated sales of EUR 109.2 million in the fiscal year 2013 and reported earnings before interest, taxes, depreciation and amortisation (EBITDA) adjusted for one-time effects of EUR 9.5 million for the period. The company's expectation for the current fiscal year 2014 (ending 31 December 2014) envisages a clear rise in sales to approximately EUR 140 million and an adjusted EBITDA of approximately EUR 14.0 million. Operating a completely vertically integrated business model, Hallhuber currently employs 1,500 people and runs 94 own retail stores, twelve outlets as well as 113 concession spaces in six countries; approx. 82% of Hallhuber sales are generated in Germany. GERRY WEBER will support Hallhuber in particular in the areas of sourcing and logistics as well as in the expansion of its network of company-managed retail stores in Germany and abroad. Both companies anticipate an improvement in their profitability as a result of synergies. GERRY WEBER assumes that Hallhuber will start making a positive contribution to the Group's operating profit and earnings per share already in the financial year 2014/15 (1 November 2014 to 31 October 2015). An important role will be played in this context by the Hallhuber management team who will continue to manage the business and push ahead its positive development in conjunction with the GERRY WEBER team following the takeover. Transaction The acquisition of the urban fashion brand and Hallhuber's 219 sales spaces flows directly from GERRY WEBER's announced strategy of generating profitable growth also through acquisitions. The Hallhuber brands are complementary to our existing GERRY WEBER brands, they operate a completely vertical business model and they are ready to move into new European markets. Hallhuber is looking at enormous sales and profit growth potential and its options for further development have barely been tapped. The parties have not disclosed the purchase price paid for 100% of the Shares in Hallhuber. The acquisition will presumably be funded by raising long-term debt. GERRY WEBER International AG's very strong balance sheet means that the equity ratio will remain above 50% even following this transaction. The GERRY WEBER Group will fully consolidate the Hallhuber companies already in its FY 2014/15 accounts. The transaction is subject to approval by the cartel authorities in Germany and Austria. Admitted to the Regulated Market of the Frankfurt Stock Exchange (Prime Standard) ISIN: DE0003304101 WKN: 330410 <pre> GERRY WEBER International AG </pre> Investor Relations Contact Claudia Kellert phone: +49 (0)5201 185 8422 e-mail: c.kellert@gerryweber.de <pre> Public Relations Contact Catharina Berndt phone: +49 (0)5201 185 320 e-mail: c.berndt@gerryweber.com </pre> 22.12.2014 The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: Gerry Weber International AG NeulehenstraÃe 8 33790 Halle/Westfalen Germany Phone: +49 (0)5201 185-0 Fax: +49 (0)5201 5857 E-mail: c.kellert@gerryweber.de Internet: www.gerryweber-ag.de ISIN: DE0003304101 WKN: 330410 Indices: MDAX Listed: Regulierter Markt in Düsseldorf, Frankfurt (Prime Standard); Freiverkehr in Berlin, Stuttgart End of Announcement DGAP News-Service ---------------------------------------------------------------------------
DGAP-Adhoc: Gerry Weber International AG acquires Hallhuber
| Source: EQS Group AG