TAKKT acquires leading US mail order company for restaurant equipment; customer portfolio further diversified in the service sector

Ad-hoc statement, 03 April 2009

Today, TAKKT AG’s supervisory board has approved the acquisition of Central Products LLC (“Central”) by the group company K + K America Corporation. The transaction has been signed and closed immediately afterwards. With the acquisition of Central - the US market leading company in the mail order market for restaurant equipment and supplies - TAKKT is further strengthening its US portfolio.

With a turnover of approx. USD 70 million and an EBITDA-margin of nearly 13 percent in 2008, Central is the market leading player in the USD 5 billion restaurant equipment and supplies market, which showed a relatively stable growth about five percent in the last 20 years. Central was founded in 1981 and has outperformed the market growth over the last 10 years.

In contrast to TAKKT’s Hubert business offering mainly smallwares and value added services to larger multi-location customers, Central is also offering larger foodservice equipment to independent small to medium size customers in the restaurant market. “Central perfectly complements our Hubert business and will allow us to pursue our tried and tested multi-brand strategy also in the food-service industry”, notes Georg Gayer, CEO of TAKKT AG. “Besides strengthening our portfolio in the service sector, the acquisition will generate back-end synergies with the existing businesses in North America, for example in the areas of purchasing, printing and transport”, adds Dr Felix A. Zimmermann, COO of the K + K America division.

With its product range of about 14.000 articles Central serves about 75.000 customers via a 300+ page catalogue and the internet, supported by a strong telephone sales team. Like TAKKT, Central follows a mixed logisitics approach of drop and stock shipments. About 40 percent of the sales are generated with articles from the 8,400 sqm warehouse at the headquarters in Indianapolis, the remaining 60 percent being delivered directly from the suppliers to the customers. Central currently has around 130 employees.

“Despite an assumed decline in turnover and profits in the business and valuation case for the current year, the transaction will be cash earnings accretive and is expected to earn its cost of capital right from the beginning” comments TAKKT’s CFO Dr Florian Funck. “Furthermore it will enhance the profitability of our K + K America division”.

TAKKT acquires Central from Johnson Ventures – a family controlled investment holding with a strategic investment focus on businesses in the wider Indiana area. Johnson Ventures is selling Central for personal reasons and to allocate capital to other businesses.

The purchase price consists of a base price of USD 83 million (approx. EUR 62 million) and an earn-out component, which is related to gross profit generation over the next 12 months. Based on the current performance of Central, the earn-out component will not be substantial. The acquisition is financed by TAKKT from existing long-term committed credit facilities. “Even after the closing of the transaction and the payment of the proposed dividend of EUR 0.80 per share in May 2009, TAKKT will still have a solid balance sheet structure with an equity ratio above 40 percent. This leaves enough room to finance future growth”, comments Gayer.

Telephone conference
We are inviting you to pose questions to the members of our management board in person. At 3pm (CEST) on 6 April 2009, we will be staging a telephone conference in which you are welcome to participate. Please dial in using the number +49 711 9659-9628 (access code 779134#).

Short profile of TAKKT AG
TAKKT is the leading B2B mail order company for office, business and warehouse equipment in Europe and North America. The Group is represented with its brands in more than 25 countries. The product range of the TAKKT subsidiaries comprises over 145,000 items for the areas business and warehouse equipment, classical and design-oriented office furniture and accessories, as well as sales promotion items for retailers, the food service industry and the hotel market.

The TAKKT Group employs some 2,000 staff, has 3 million customers worldwide and distributes more than 60 million catalogues and mailings per year.

TAKKT AG is listed on the SDAX and was admitted to Deutsche Boerse’s Prime Standard on 1 January 2003.

Stuttgart, 4 April 2009

Contact:
Georg Gayer, CEO
Phone +49 711 34658-201

Dr Florian Funck, CFO
Phone +49 711 34658-207

E-mail: investor@takkt.de