AUGSBURG, Germany, Aug. 12, 2004 (PRIMEZONE) -- BOWE SYSTEC AG reached an agreement with its North American co-partners at BOWE Bell & Howell, USA, with which the company has had a joint 50% holding up till now, according to which BOWE SYSTEC can increase its share of BOWE Bell & Howell to 60% at the beginning of 2005. The remaining shares held by the outside shareholders are to be acquired in annual tranches of 10%.
With this agreement BOWE SYSTEC AG will fully consolidate its US-American activities from 2005 and as a result will be able to increase its turnover worldwide to more than EUR 500 million. The previous agreements with the co-partners made provision for BOWE SYSTEC to be able to buy out the co-partners by means of option agreements in 3 annual stages from 2007.
The Board of BOWE SYSTEC AG sees the amended agreements as clearly enabling easier integration of the US company into the BOWE SYSTEC Group, as well as extending those investments which are altogether linked with the acquisition of the majority over a five-year period instead of the previously agreed three-year period. By bringing the further takeovers forward, BOWE SYSTEC expects a further increase in its result and overall a reduction in the total investment for the complete integration.
At the same time within the framework of a restructuring of the finances of the American associated company the non-voting preference shares held by BOWE SYSTEC have been redeemed by BOWE Bell & Howell and with the proceeds the remaining liabilities from the initial acquisition of a 50% share in BOWE Bell & Howell have been settled with the vendor. The planned acquisition of a further 10% shareholding in BOWE Bell & Howell at the start of 2005 is being financed largely out of liquid assets.
Further information about BOWE SYSTEC is available at http://www.boewe-systec.de