RHI sells Engineering business to Deutsche Beteiligungs AG (ad hoc)

03. June 2002

Deutsche Beteiligungs AG has, together with the Management, acquired the entire Engineering business of the RHI group. The Engineering group employs a total of 780 people and reported sales revenues of more than EUR 230 million worldwide in the year 2001. Approx. EUR 195 million of it were consolidated in the RHI group. For the Engineering companies, the change in ownership opens up good perspectives for an attractive development within the group of Deutsche Beteiligungs AG.

RHI is selling all six Engineering business units with nine core companies, which have established brand names in their respective markets: Didier-M&P Energietechnik GmbH (share: 66.67%), Mainz-Kastel (blast furnaces), Maerz-Gautschi GmbH, Düsseldorf (industrial kilns for the steel, aluminum and copper industries); Kaefer Raco Engineering GmbH, Bremen, and Bachmann Industries Inc., USA (components and systems for gas power plants); Maerz Ofenbau AG, Switzerland, and Cimprogetti S.p.A., Italy, (kilns for the firing of limestone); parts of the Zimmermann & Jansen Group as well as Hermann Rappold GmbH, both based in Düren (industrial valves); StrikoWestofen GmbH (share: 58%), Wiehl (melting and proportioning kilns for the light metals industry).

By selling Engineering, RHI is continuing the restructuring and the group’s concentration on the core business Refractories. The objectives of the business plan, which RHI presented in the context of the capital restructuring, will not be affected by the sale. Rather, the loss of earnings potential for RHI is more than compensated by the positive liquidity and risk effects. The consolidated balance sheet will be discharged from future pension and purchase price obligations. Moreover, RHI can reduce its financial liabilities due to the selling price. The positive liquidity effect for RHI amounts to more than EUR 40 million in the medium term.

The enforcement of the contracts is subject to the approval of the competent cartel authorities.