SBF signs letter of intent to acquire electronics company

• Letter of Intent signed for acquisition of majority stake in German electronics company
• Transaction will directly contribute to further sales and earnings growth
• Significant increase in value added and extensive synergies expected
• Management Board in dialog with further takeover candidates to enhance profitable organic growth further with targeted acquisitions

Leipzig, September 07, 2021 - SBF AG (ISIN: DE000A2AAE22; WKN A2AAE2, "SBF"), a listed supplier of LED lighting systems for rolling stock and industry, plans to take the next step in its growth by acquiring a successful German electronics company. The Management Board has signed a letter of intent for the acquisition of a majority stake. Subject to a positive outcome of the due diligence process, which is due to begin shortly, the transaction is expected to be completed successfully. With the acquisition, SBF would further increase its value creation depth, improve the company's earnings, financial and asset position, and benefit from extensive synergy effects.

Rudolf Witt, Member of the Management Board of SBF AG comments: "The recently published half-year figures and the full order books show that we are well on track also from an operational point of view. In order to further strengthen our business and grow even more dynamically, we are always seeking suitable takeover candidates in our market environment. In this context, the signing of the letter of intent is a consequent step."

The takeover candidate is a long-standing, successful and owner-managed electronics company from Germany with annual sales in the high single-digit million range and an EBIT margin of more than ten percent. The company has modern machinery and would significantly strengthen the SBF Group's value chain with its portfolio of products and services. In addition, the Management Board expects the takeover to generate high synergy effects in the two business units "Rolling Stock" and "Industrial Lighting".

The majority shareholding would further strengthen the company's own growth story. SBF expects a significant increase in sales and earnings in the coming years due to the ongoing positive operating development and intended acquisitions. Further details on this transaction will be published after a positive conclusion of the due diligence process. In addition, the SBF Management Board is currently in talks with further takeover candidates.

About SBF Group:
SBF is a listed supplier of LED lighting systems for rolling stock and industry. With its focus on energy-efficient LED lighting, SBF is benefiting from the megatrends of climate protection and urbanization and expects double-digit growth rates in the coming years.

In the "Rolling Stock" business area, SBF is a tier 1 supplier of complex ceiling and lighting systems for the world's leading rolling stock manufacturers. Strong technological competence, high vertical integration and customized customer solutions are the basis for a leading market position. In the "Industrial Lighting" business area, SBF offers modern and smart LED systems for efficient lighting of roads, railroad stations and industrial plants.

For more information, visit https://www.sbf-ag.com.

Company contact:

SBF AG
Management Board
Zaucheweg 4
04316 Leipzig
Germany
Phone: +49 (0)341 65235 894
Mail: info@sbf-ag.com

Press contact:

Kirchhoff Consult AG
Alexander Neblung
Borselstraße 20
22765 Hamburg
Germany
Tel: +49 (0)40 60 91 86 70
E-Mail: sbf@kirchhoff.de