Brockhaus Technologies AG: High value realization through sale of Palas; forecast adjusted accordingly

Frankfurt am Main, November 24, 2022

Brockhaus Technologies AG (BKHT, ISIN: DE000A2GSU42, “Brockhaus Technologies”) today signed a definitive agreement for the sale of its 70% share in Palas Holding GmbH as well as its subsidiaries (together “Palas”) to the Swedish technology and industrial group Indutrade AB. Closing of the transaction is scheduled to take place at the same day of today’s signing of the contract.

The sale is based on a valuation of Palas of €100 million. The purchase price that results from this valuation is divided into multiple tranches: In addition to a first purchase price tranche that becomes payable immediately with today’s signing of the contract, the parties have also agreed on two forward-looking tranches of the purchase price (“earn-out”), which are being paid dependent on the adjusted EBIT of Palas in 2023 and 2024.

With closing of the transaction, Brockhaus Technologies achieves sales proceeds of around €59 million (corresponding to c. €5.38 sales proceeds per share) in addition to the potential pro-rata earn-out payments of up to €16.7 million. Brockhaus Technologies plans to utilize the sales proceeds, which correspond to a multiple of the invested equity of €18 million at acquisition of Palas in 2018, to further drive shareholder value created through new acquisitions or other measures.

As a result of its sale, Palas will be de-consolidated from the consolidated financial statements of Brockhaus Technologies as per the date of disposal. Revenue, further income and expenses of Palas, until the date of the sale, will be presented in BKHT’s consolidated income statement as a discontinued business and therefore, will no longer be included in the group’s revenue, further income and expenses. Solely for this reason, Brockhaus Technologies adjusts its forecast for fiscal year 2022 to expected revenue before PPA of between €130 and €135 million. Without the sale of Palas, the previous forecast of between €150 and €155 million would have still been valid. With respect to the adjusted EBITDA margin Brockhaus Technologies confirms the previous forecast of 35%. This forecast remains unchanged despite the deconsolidation of Palas, because Palas’ expected adjusted EBITDA margin for the full year of 35% corresponds to the group forecast.

Contact:

Brockhaus Technologies – Paul Göhring

Phone: +49 69 20 43 40 90

Fax: +49 69 20 43 40 971

E-Mail: ir@brockhaus-technologies.com