Demag Holding S.A.R.L., Luxembourg, announced today that it has signed a definitive agreement to sell Stabilus GmbH. The buyers are funds managed by Montagu Private Equity, a leading European private equity house, together with the management of Stabilus. The completion of the transaction is subject to necessary regulatory approvals.

Stabilus is a global leader in the manufacture of gas springs, hydraulic vibration and motion dampers, hydraulic doorstays, and automatic opening and closing systems. Since 2002, the company has been owned by Demag Holding, a diversified conglomerate in the manufacturing and services industries. Kohlberg Kravis Roberts acquired 81% of Demag Holding's seven portfolio companies in 2002 from Siemens AG, which holds the remaining 19 % of the holding. 

Dr. Horst Heidsieck, Chief Executive Officer of Demag Holding said: "We are delighted that with Montagu Private Equity we found a solid and well-known investor for Stabilus. This sale is a significant step ahead in our portfolio strategy, which creates and realises value." JPMorgan was the advisor to Demag Holding for this transaction.

Nigel Hammond, Head of European Investment at Montagu Private Equity, emphasized: "Not only does Stabilus have strong market positions based upon a track record of consistent high quality manufacturing but it has robust growth potential through the application of its engineering excellence to new product development." 

A key area for geographic growth will be in Asia through its facility in Asia and also new operations in China. In addition sales growth is anticipated from the expansion of its customer base through a more proactive approach to the market and through the penetration of new markets.
Stabilus' managing directors Udo Wendland, Stefan Schreiter and Peter Thurmann welcomed the acquisition by Montagu Private Equity as an important step in the successful ongoing development of the company.

Gas springs and dampers produced by Stabilus are used in the automotive and vehicle assembly sectors, in a wide range of industrial applications, and in swivel chair manufacturing. As a globally active company, Stabilus has ten plants based in ten countries on five continents and boasts a worldwide sales and service network and its own distribution centres. In fiscal year 2003 (ending September 30), Stabilus posted sales revenues of €364m. The company employs about 3,000 people worldwide, 1,700 at its headquarters in Koblenz/Germany. The client list includes major automotive manufacturers and industrial companies, such as producers of agricultural machinery, domestic appliances, and office furniture.