Markets

König & Bauer lacks confidence – Sartorius with a new stake

In 2019, König & Bauer had a turnover of 1.22 billion euros. According to its own statements, the company will not reach this level of revenue again anytime soon. Therefore, cost-cutting measures are also planned. Sartorius, on the other hand, is expanding and acquires a stake in a Slovenian purification specialist.

The most important things about König & Bauer and Sartorius in advance:

  • At König & Bauer, growth is a long time coming
  • Sartorius wants to grow further through takeovers

The German printing machine manufacturer König & Bauer (KBA) is hit hard by the corona crisis. The company is responding with a cost-cutting program that also provides for job cuts. Nevertheless, KBA is cautious about the nearer business future.

According to its own statements, the company ruled out a rapid recovery in demand for the time being: In the short term, the pre-crisis revenue level will probably no longer be achieved. In 2019 KBA generated sales of 1.22 billion euros. König & Bauer does not forecast growth again until 2024: Then the proceeds should be around 1.3 billion euros.

According to KBA, the cost-cutting program will also be completed this year. Among other things, it plans to cut up to 900 of the current 5,800 jobs. In addition, the company’s structures should also be put to the test. KBA hopes to save 100 million euros by 2024. The printing press manufacturer put the cost of the program at 50 million euros. They should be booked in the current year.

The pharmaceutical and laboratory supplier Sartorius is on an acquisition tour and is investing in the Slovenian purification specialist BIA Separations. BIA Separations is to be taken over for EUR 360 million and incorporated into the subsidiary Sartorius Stedim Biotech, announced the MDAX®-listed company in an ad hoc announcement.

240 million euros are to be paid in cash and 120 million euros in Sartorius-Stedim shares. For comparison: Sartorius is currently valued at 26 billion euros after the recent soaring of the shares on the stock exchange and the subsidiary Sartorius Stedim Biotech, in which the Göttingen-based company holds 74 percent of the shares, at a little more than 28 billion euros.

Products on Sartorius

“In addition, both parties have agreed three tranches of earnings-related earn-out payments over the next five calendar years,” the statement said. The transaction is subject to customary closing conditions and is expected to be completed by the end of the year. BIA Separations has around 120 employees at its headquarters in Ajdovscina, Slovenia. For 2020 it expects a turnover of 25 million euros. BIA Separations, which was founded in 1998, claims to be in the process of more than quadrupling its production capacity.

When purchasing certificates and leverage products, investors should familiarize themselves with how they work and understand the opportunities and risks. Investors should be particularly aware of the increased risks associated with leverage products. In addition, the creditworthiness and thus the risk of default of the issuer should also be considered. You can obtain further important and useful information about our products by calling the toll-free number 0800 4000 910 or on our website www.hsbc-zertifikate.de.

Source: HSBC

Click here for the HSBC homepage

Important instructions

This document was produced by HSBC Trinkaus & Burkhardt AG (“HSBC”). It is for informational purposes only and may not be passed on to third parties without the express written consent of HSBC. The document is a marketing tool. The legal requirements for the impartiality of financial analyzes are not met. There is no prohibition on trading the financial products discussed before this presentation is published (“front running”). The document is also not a substitute for expert investment advice tailored to individual requirements. A subscription offer is also not yet associated with this. The document is only aimed at people who have their permanent residence / seat in Germany or Austria. It is not intended for recipients in other jurisdictions, and in particular not for US citizens. Any information given on historical performance (including simulations) as well as forecasts of future performance of the financial products / financial indices presented are not a reliable indicator of future performance. If the discussed financial products are listed in a currency other than EUR, the return may rise or fall due to currency fluctuations. The tax treatment of an investment depends on the personal circumstances of the investor and can be subject to future changes. The information given in this document is based on sources which we believe to be reliable, but which we have not subjected to impartial testing. We do not guarantee and accept no liability for the correctness and completeness of the information contained herein.

Advertising notice

The basic prospectuses as well as the final terms and the basic information sheets are available here. By entering the respective WKN in the search field or via the “Products” tab, you can access the individual product view. There, under “Downloads”, the relevant final terms and conditions for the individual products can be called up, which contain the terms and conditions of the offer, including the relevant terms and conditions, as well as the relevant basic information sheets.

The approval of the base prospectus by the BaFin is not to be understood as its approval of the securities offered. We recommend that interested parties and potential investors read the Base Prospectus and the Final Terms before making an investment decision in order to obtain as much information as possible, in particular about the potential risks and opportunities of the security.

You are about to acquire a product that is not easy and can be difficult to understand.

License notice

“DAX®”, “TecDAX®”, “MDAX®”, “VDAX-NEW®”, “SDAX®”, “DivDAX®”, “ÖkoDAX®”, “Entry Standard Index”, “X-DAX®” and “GEX®” are the intellectual property (including registered trademarks) of Deutsche Börse AG (“DBAG”), Deutsche Börse Group or their licensors and are used under license. The securities are neither promoted, advertised, distributed or supported in any other way by DBAG, Deutsche Börse Group or their licensors, research partners or data suppliers, and DBAG, Deutsche Börse Group and their licensors, research partners or data suppliers assume no warranty and exclude any guarantee Liability (from negligent as well as from other conduct) in this regard generally from and in particular with regard to any errors, omissions or disturbances of the relevant index or the data contained therein.

EURO STOXX 50®, STOXX 50®, STOXX® 600 and its brands, STOXX® Europe 600 Oil & Gas, STOXX® Europe 600 Basic Resources, EURO STOXX 50® DVP are the intellectual property (including registered trademarks) of STOXX Ltd., Zug, Switzerland (“STOXX”), Deutsche Börse Group or its licensors and is used under license. The securities are neither promoted, advertised, distributed or supported in any other way by STOXX, Deutsche Börse Group or their licensors, research partners or data suppliers, and STOXX, Deutsche Börse Group and their licensors, research partners or data suppliers assume no warranty and exclude any guarantee Liability (from negligent as well as from other conduct) in this regard generally from and in particular with regard to any errors, omissions or disturbances of the relevant index or the data contained therein.

The S&P 500 Index is a product of S&P Dow Jones Indices LLC (“SPDJI”) and has been licensed for use by HSBC Trinkaus & Burkhardt AG (“Licensee”). Standard & Poor’s®, S & P® and S&P 500® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”), and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”). These trademarks have been licensed for use by SPDJI and have been re-licensed by the licensee for certain purposes. Licensee’s products are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P or their respective affiliates, and neither party makes any representations as to the advisability of investing in such product (s) and assumes no liability for any errors, omissions or interruptions in the S&P 500 Index.

Nasdaq® and Nasdaq-100 Index® are registered trademarks of Nasdaq, Inc. (together with its affiliated companies referred to as the “Companies”) and are licensed to HSBC Trinkaus & Burkhardt AG for use by them. The companies make no statements about the legality or suitability of the securities. The companies do not issue, recommend, sell or advertise the securities. THE COMPANIES MAKE NO WARRANTIES AND ASSUME NO LIABILITY IN CONNECTION WITH THE SECURITIES.

The “Dow Jones Industrial Average” is a product of S&P Dow Jones Indices LLC (“SPDJI”) and has been licensed for use by HSBC Trinkaus & Burkhardt AG (“Licensee”). Standard & Poor’s® and S & P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”), and DJIA®, The Dow®, Dow Jones® and Dow Jones Industrial Average are trademarks of Dow Jones Trademark Holdings LLC (“Dow Jones”). These trademarks have been licensed for use by SPDJI and have been re-licensed by the licensee for certain purposes. Licensee’s products are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P or their respective affiliates, and neither party makes any representations as to the advisability of investing in such product (s) and assumes no liability for any errors, omissions, or interruptions in the Dow Jones Industrial Average.

Editor: HSBC Trinkaus & Burkhardt AG, Königsallee 21/23, 40212 Düsseldorf

Tags

Related Articles

Back to top button
Close
Close