Luxembourg, 31 March 2009. Société Nationale de Crédit et d’Investissement (‘SNCI’) - Luxembourg state-owned Investment and Development Bank and Paul Wurth S.A. (‘Paul Wurth’) announce that they have signed a memorandum of understanding in relation to the sale of 50.4% of the shares held by SNCI in CTI Systems S.A. (‘CTI’) to Paul Wurth S.A. By entering into this agreement, the parties reach a successful outcome of discussions which started in early 2008.
Operating its engineering centre and production and assembly facilities in the regional economic activity zone of Eselborn/Lentzweiler (Luxembourg), CTI is a company specialized in developing, engineering, building and commissioning integrated and turnkey solutions for heavy intralogistics, i.e. equipment for the transportation, lifting and handling of heavy goods. CTI provides systems to sectors as various as the aircraft, steel, automotive or wood industry. Since SNCI took over all of the shares in the early Nineties, CTI has known a noteworthy development of its activities thanks to the joint efforts of its shareholder SNCI, its board of directors and its management. In 2008, CTI achieved a turnover of EUR 40.6 million and is presently employing about 200 people.
With Paul Wurth and CTI joining forces, CTI will be able to benefit from a truly international sales network of an industrial group, opening new prospects to the company’s development and thus consolidating its employment level. To Paul Wurth this agreement ensures the enlargement of its business segments and diversification of its exposure to the steel industry. The fact that the core competences of both companies, namely their expertise in mechanical engineering and in international project management, are very close adds to the interest of joining forces and strengthens the competitive position of the Luxembourg industry.
The parties also granted each other sale and purchase options on the remaining shareholding of SNCI in CTI, allowing Paul Wurth to acquire over a mid term horizon, full ownership of CTI.
Commenting this transaction, Gaston REINESCH, President of SNCI, said: “I am convinced that by becoming a group member of a new reference shareholder with such high industrial standing will allow CTI to serenely pursue its development in Luxembourg and internationally and will allow Paul Wurth, a company in which SNCI also holds an equity stake, to consolidate its activity.”
For Marc SOLVI, Chief Executive Officer of Paul Wurth: “The taking of control by Paul Wurth over CTI is a win-win situation for both companies and will certainly contribute to perpetuate the industrial engineering sector in Luxembourg.”
About Paul Wurth: Located in Luxembourg since its creation in 1870, the company Paul Wurth is today one of the world leaders in the design and supply of technologies and installations for the iron making industry. At regional level, Paul Wurth is also specialized in planning and managing major construction and infrastructure projects. With more than 1 400 collaborators, the Paul Wurth Group operates some 20 entities in the main steelmaking regions of the world.
PAUL WURTH S.A. • 32, rue d’Alsace • P.O. Box. 2233 • L-1022 Luxembourg
Tel. : (+352) 4970-1 • Fax : (+352) 4970-2209
• www.paulwurth.com
About SNCI: SNCI is a public-law banking institution specializing in medium and long term financing of Luxembourg companies. It grants loans for investment, innovation and start-up to Luxembourg based companies. SNCI may also realise equity operations.
SOCIETE NATIONALE DE CREDIT ET D'INVESTISSEMENT. • 7, rue du St. Esprit • L-1475 Luxembourg
Tel. : (+352) 46 19 711 • Fax : (+352) 46 19 79
• www.snci.lu