HMS Group Plc UK Regulatory Announcement: Acquisition

LONDON--(BUSINESS WIRE)--
HMS rexroth hydraulic pumps Group Investor Relations Release
Moscow
August 9, 2012
HMS Hydraulic Machines & Systems Group plc
(the "Company", and together with its subsidiaries, the "HMS Group")
HMS GROUP COMPLETES AN ACQUISITION OF APOLLO GOESSNITZ GmbH
Moscow, Russia - August 9, 2012 - HMS Group (LSE: HMSG), the leading pump manufacturer and
provider of flow control solutions and related services in Russia and the CIS, announces it has closed
on the acquisition of Apollo Goessnitz GmbH and received a full title on 75% of its share capital.
There exist several easy improvements which are able to be added to a commercial
centrifugal or positive displacement pump. Regarding pumps with overhung impellers, a solid shaft
is a easy adjustment over the more common sleeved shafts. Mechanical seals may be improved
through silicon carbide faces, and elastomers are better when changed to Viton. In addition,
magnetic bearing protectors are a vast improvement over the lip seals which nearly all water pumps
use to keep bearing sump oil contamination free.
Apollo Goessnitz GmbH is the worldwide operating manufacturer of centrifugal pumps and system
equipment, located in Goessnitz (Thuringia), Germany.
HMS Group paid EUR 25 mn for 75% of the share capital. The transaction has been financed with 2-
year bank credit facility. On the completion of the transaction estimated Net debt to EBITDA (LTM)
ratio of HMS Group stood at around 2.0 that is well below internal covenant set at 2.5.
The main products of Apollo Goessnitz GmbH (Apollo) are customized centrifugal pumps, related
spare parts and integrated pump-based systems that comply with API (American Petroleum
Institute) and DIN (German Industrial Standards), which are primarily used in oil and gas sector,
both for offshore and onshore applications, in thermal power generation as well as other industries.
See previous press releases regarding the transaction dated July 20, 2012:
http://grouphms.com/press_center/detail.php?ID=3232
See the presentation of the transaction:
http://grouphms.com/shareholders_and_investors/speeches_and_presentations/index_detail.php?ID=
3233
Apollo Goessnitz is the manufacturer of centrifugal pumps and system equipment used in oil
refining, gas processing, chemical and petrochemical industries, power generation and water
utilities as well as offshore production and liquid gas transportation. Production of Apollo Goessnitz
is made according to API 610 (American Petroleum Institue), DIN (Deutsches Institut fuer Normung)
and ISO (International Standards Organizations). Apollo has two business divisions "Pump division"
(pump production and service) and "Engineering systems division" (projecting, design. The majority
of installed pumps were not initially designed for their present use. Frequently, a line in a company
is relocated and a pump that started out providing cooling water to an injection molding machine is
now needed to move oil from a rail car to a tank. Unfortunately, this causes many problems for the
pump and the plant. Pumps operate where the pump curve crosses the system curve. When you
move a pump from one system to another, this means that the system curve is different. This new
system may cause the pump to operate away from its best efficiency point, leading to vibration and
other component problems that are simply symptoms of a mis-matched pump and system.and
manufacture of plants for liquid fuels, process plants, plants for water supply, automation systems
and electrical equipment). In 2011, Apollo Goessnitz sales were EUR 20.3 mn, net debt of EUR 1.6
mn and net profit of EUR 1.3 mn.
HMS Group is the leading pump manufacturer and provider of flow control solutions and related
services to the oil and gas, nuclear and thermal power generation and water utilities sectors in
Russia and the CIS. The HMS Group's products are mission-critical elements of projects across a
diverse range of industries. It has participated in a number of large-scale infrastructure projects in
Russia, including impeller design providing pumps and modular equipment to the Vankor oil field
and pumping stations on recent trunk pipelines projects linking Russia's core oil producing areas to
export ports on the Pacific Ocean and Baltic Sea. The Group reported revenues of RUB 7.3 billion,
adjusted EBITDA of RUB 1.4 billion and profit of RUB 485 million for the 3 months ended March 31,
2012. The HMS Group's global depositary receipts ("GDRs") are listed under the symbol "HMSG"
on the London Stock Exchange.
For further information, please contact:
Investor Relations: Sergey Klinkov, Head of Investor Relations
Phone: +7 (495) 730-6601 x 1302, Klinkov@hms.ru
Media Relations: Nozima Karimova, Head of Press Service
Phone: +7 (495) 730-6610, Karimova@hms.ru
Disclaimer
The information contained herein has been prepared using information available to HMS Hydraulic
Machines & Systems Group Plc ("HMS Group" or "HMS" or "Group" or "Company") at the time of
preparation of the presentation. External or other factors may have impacted on the business of
HMS Group and the content of this presentation, since its preparation. In addition all relevant
information about HMS Group may not be included in this presentation. No representation or
warranty, expressed or implied, is made as to the accuracy, completeness or reliability of the
information.
Any forward looking information herein has been prepared on the basis of a number of assumptions
which may prove to be incorrect. Forward looking statements, by the nature, involve risk and
uncertainty and HMS Group cautions that actual results may differ materially from those expressed
or implied in such statements. Reference should be made to the most recent Annual Report for a
description of the major risk factors. This presentation should not be relied upon as a
recommendation or forecast by HMS Group, which does not undertake an obligation to release any
revision to these statements.
This presentation does not constitute or form part of any advertisement of securities, any offer or
invitation to sell or issue or any solicitation of any offer to purchase or subscribe for, any shares in
HMS Group, nor shall it or any part of it nor the fact of its presentation or distribution form the basis
of, or be relied on in connection with, any contract or investment decision.
Short Name: HMS Group Plc
Category Code: ACQ
Sequence Number: 338726
Time of Receipt (offset from UTC): 20120809T115911+0100