Successful sale of Neschen Coating GmbH above net asset value valuation

• Sale of 100% stake to strategic investor ATP adhesive systems AG
• Second exit in the current financial year
• Sales price in the double-digit million range and above latest net asset value valuation
• Adjustment of the guidance for the 2024 financial year to continuing operations and taking into account current developments and expectations: Sales of EUR 200-220 million and adjusted⁽¹⁾ EBITDA margin of 9.5-10.5%

Munich, October 08, 2024 – Blue Cap AG (“Blue Cap”) signed an agreement on the sale of its 100% stake in Neschen Coating GmbH (“Neschen”). The buyer is ATP adhesive systems AG (“ATP”), a strategic investor.

The total proceeds (before taxes) are in the double-digit million range and around 10% above the net asset value valuation as of June 30, 2024. The sale of the company corresponds to an annual return on invested capital (internal rate of return) of around 44% and means a multiple on the capital invested of around 8x.

Neschen offers products for a wide range of applications in the fields of graphic media and laminators, book protection and repair as well as (individual) solutions for industrial applications, e.g. in electronic products. The customer base includes industrial companies with a need for industrial surface applications, companies in the graphic arts sector as well as libraries, archives and museums.

Successful development and comprehensive turnaround in 2023

Blue Cap acquired Neschen, based in Lower Saxony, from insolvency in 2016 and has since developed the company further with targeted transformation measures. In recent years, particular attention has been paid to expanding the Industrial Applications division.

The successful turnaround in 2023, which put Neschen back on a profitable growth path, was a significant milestone in the company's development. The measures essentially included cost efficiency measures, streamlining the product range and intensifying working capital management. Thanks to the consistent implementation of these initiatives, Neschen has seen a clear upward trend in its key operating and financial figures in recent quarters.

Dr. Henning von Kottwitz, CEO of Blue Cap, comments: “I am very pleased that we are able to sell Neschen to a suitable strategic investor in a challenging economic environment. This sale implements our best owner approach and is a consistent and value-generating step for Blue Cap. With this exit, our shareholders benefit from the increase in value that we have been able to achieve at Neschen in recent years.” Henning Eschweiler, COO of Blue Cap, adds: “The successful turnaround last year formed the basis for the sale today. This is a strong proof of our expertise in turnaround and value creation. We wish the entire Neschen team all the best for the future.”

Nils A. Honscha, Managing Director of Neschen, emphasizes: “Blue Cap has supported us very closely and in a spirit of partnership over the last few years. We are grateful to the entire team for their strategic support and valuable expertise, which has enabled us to significantly strengthen our market position.”

Guidance adapted to continued operations

The sale of Neschen announced today is Blue Cap's second exit this year. Just a week ago, it announced the sale of the portfolio company nokra. The proceeds from the sale also open up the possibility of investing in new portfolio companies: Blue Cap is focusing in particular on companies in special situations that offer high potential for value creation. Blue Cap's management is currently examining several promising takeover candidates.

Taking into account the transaction and the current business development, Blue Cap adjusts its guidance for the full year 2024. Weaker revenue development in some segments is faced by a better than expected result guidance, in particular for con-pearl. For the continuing operations, the Management Board now expects consolidated revenue for the full year 2024 in a range of EUR 200-220 million (previously EUR 270-290 million) and an adjusted⁽¹⁾ EBITDA margin of 9.5-10.5% (previously 8.5-9.5%).

 ⁽¹⁾ Adjustments: Adjusted for extraordinary, out-of-period and other effects from reorganization measures and one-off effects

About Blue Cap AG

Blue Cap AG is a Munich-based investment company founded in 2006 and listed on the capital market. The company acquires medium-sized companies from the B2B sector in special situations and supports them in their entrepreneurial development with the aim of selling them profitably at a later date. The acquired companies are headquartered in the DACH region, generate sales of between EUR 20 and 200 million and have a sustainably stable core business. Blue Cap mostly holds majority stakes in eight companies from the Adhesives & Coating Technology, Plastics Technology, Production Technology, Life Sciences and Business Services sectors. The Group currently employs around 1,200 people in Germany and other European countries. Blue Cap AG is listed on the open market (Scale, Frankfurt and m:access, Munich; ISIN: DE000A0JM2M1; ticker symbol: B7E). www.blue-cap.de

Contact:

Blue Cap AG
Annika Küppers
Corporate Affairs
Phone +49 89 288909-24
ir@blue-cap.de