KKR ACQUIRES SIEMENS NIXDORF FROM SIEMENS AG SIEMENS NIXDORF
TO OPERATE AS INDEPENDENT BUSINESS FOLLOWING TAKEOVER
Kohlberg Kravis Roberts & Co. L.P. and GS Capital
Partners have agreed to acquire Siemens Nixdorf, soon to be re-named "Wincor
Nixdorf".
Kohlberg Kravis Roberts & Co. L.P. ("KKR") and
GS Capital Partners III, L.P. ("GSCP"), together with management,
agreed to acquire 100% of Siemens Nixdorf Retail and Banking Systems GmbH
("Siemens Nixdorf"), Paderborn, a subsidiary of Siemens AG, Munich,
with economic effect as of 1 October 1999. The acquisition is subject to
anti-trust approval and certain other conditions. The purchase price on a debt
free basis is DM 1,440 million. KKR, one of the world's largest and most active
management buyout specialists, will own the majority of Siemens Nixdorf. GSCP is
a private equity investment fund affiliated with the global investment bank
Goldman, Sachs & Co. ("Goldman Sachs").
"Siemens Nixdorf represents a unique opportunity to
acquire an established business with excellent management and attractive growth
prospects. We are very impressed with the current management's achievements, and
we look forward to working with them to grow this business on an international
scale," said Ned Gilhuly, Managing Director of KKR in London.
Siemens Nixdorf is a leading provider of IT solutions and
services for the retail and banking industry, with more than 3,400 employees and
21 subsidiaries worldwide. In the past five years, it has more than doubled its
annual turnover to DM 2.6 billion. Today, the company ranks third worldwide in
electronic point of sale systems (EPOS) for the retail sector and has moved up
to fourth place in automated teller
machines (ATMs).
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Siemens Nixdorf
Retail and Banking Systems GmbH
Corporate Communications
Heinz-Nixdorf-Ring 1
D-33106 Paderborn
Germany
Postal Address:
D-33094 Paderborn
Telephone + 49 52 51/8-2 62 90
Telefax + 49 52 51/8-2 62 29
http://www.siemens-nixdorf.com
President and Chief Executive Officer:
Karl-Heinz Stiller
Chief Financial Officer:
Eckard Heidloff
Registered Office:
Paderborn
Information Number:
UK-221099/001e
"The decisive factor in considering this investment was
the know-how and the strong reputation that the company has developed in
information systems and solutions for the retail and banking industries,"
said Johannes Huth, Managing Director of KKR in London. KKR’s expertise in
these sectors, developed through prior investments in companies such as Safeway
and Fleet Financial Group, helped KKR to recognize the domestic and global
potential of the business.
Alexander Dibelius, Managing Director of Goldman Sachs in
Frankfurt, continued: "It is our objective to become the leading systems
and solutions provider in the retail and banking industries by growing the
company, both organically and through acquisitions." According to Mr. Huth,
KKR has a strong track record in providing acquired businesses with the
expertise and financial resources to build their businesses into global
franchises.
"Our new owners will give us a good foundation on which to build a
successful future for our company," said Karl-Heinz Stiller, President and
Chief Executive Officer at Siemens Nixdorf. Mr. Stiller sees new opportunities
for global expansion and further market share expansion. "Given the fact
that we have grown much faster than the market, our desire to be the world's
number 1 player in the field of information systems for the retail and banking
industry is achievable".
October 22, 1999
For further information, please contact:
Kohlberg Kravis Roberts & Co. L.P.
Johannes Huth
Tel.: +44 (171) 839 9830
Goldman, Sachs & Co. oHG
Peter Dietlmaier (Corporate Communications)
Tel.:+49 (69) 7532 2644
Siemens Nixdorf Retail and Banking Systems GmbH
Andreas Bruck (Corporate Communications)
Tel.: +49 (5251) 8 26290
Penrose Financial
Andrew Nicolls
Tel.: +44 (171) 726 8686
Note to the editor:
Siemens Nixdorf
Siemens Nixdorf Retail and Banking Systems GmbH is a leading
provider of IT solutions and services for the retail and banking industries. In
banking systems, Siemens Nixdorf manufactures automated teller machines,
automated teller safes, statement printers, multimedia information terminals and
airline terminals. In retail systems, the company provides electronic point of
sale systems and enterprise solutions. More information about Siemens Nixdorf
and its products may be found on the World Wide Web at http://www.siemens-nixdorf.com.
Kohlberg Kravis Roberts & Co.
KKR was founded in 1976 and is one of the world’s oldest
and most experienced private equity firms specializing in equity investments in
management buyouts. KKR has offices in New York, London and Menlo Park. Over the
past 23 years, KKR has invested more than US$ 13 billion of equity in more than
75 transactions with a total value in excess of US$ 94 billion across more than
25 different industries. KKR’s current fund has US$ 6 billion in committed
capital. KKR’s investment approach is focused on acquiring attractive business
franchises and working closely with management over the long term to design and
implement value creating strategies. This transaction represents a further
milestone for KKR in Europe. Other major European investments have included the
acquisition of Willis Corroon plc, Reed Regional Newspapers to form Newsquest
plc, and Rhine Reinsurance Company Ltd. In March 1999, KKR acquired a 4.9% stake
in TI Group plc. In the US, KKR invested in the supermarket chain Safeway Inc.,
the battery manufacturer Duracell International Inc. and the packaging
manufacturer Owen-Illinois Inc. KKR's investors are primarily US state and
corporate pension funds, banks and university endowments.
Goldman Sachs
Goldman, Sachs & Co. is a leading global investment
banking and securities firm, providing a full range of investing, advisory and
financing services worldwide to a substantial and diversified client base, which
includes corporations, financial institutions, governments and high net worth
individuals. Founded in 1869, it is one of the oldest and largest investment
banking firms. The firm is headquartered in New York and maintains offices in
London, Frankfurt, Tokyo, Hong Kong and other major financial centers around the
world. Investment partnerships affiliated with Goldman, Sachs & Co.,
including GS Capital Partners III, L.P., an approximately US$ 2.8 billion fund,
invest in Siemens Nixdorf. Each of these affiliated investment partnerships is
sponsored and managed by Goldman, Sachs & Co. Since 1986, the private equity
funds managed by Goldman, Sachs & Co. have invested in excess of US$ 10.0
billion of equity in over 300 transactions worldwide. Goldman, Sachs & Co.
has a team of over 150 professionals dedicated to the private equity business
based in New York, Dallas, London, Paris, Tokyo and Hong Kong. The investors in
the Goldman Sachs funds include pension funds, university endowments,
foundations and high net worth individuals from around the world. Goldman, Sachs
& Co. is the largest single investor in each of the funds.
Siemens Nixdorf Banking Systems is represented in Lithuania trough the
company UAB ”Penki Kontinentai”, that is ”The Qualified Reseller” and
”Qualified Service Partner” of Siemens Nixdorf Banking Products.
All Lithuanian banks, that are using ATMs are Siemens Nixdorf clients. These
are eight of the top banks in Lithuania. Some of them, that purchased more than
300 units of ATMs, are among the biggest Siemens Nixdorf clients in East Europe.
Taking in account that from end of 1995 up to end of 1999 Siemens Nixdorf
delivered 487 units of ATMs to Lithuania’s customers, Lithuania is among the
most important countries for Siemens Nixdorf in East Europe.