SBF clearly on growth course with acquisition of electronics manufacturing specialist AMS

• Acquisition of 100 % of the shares of AMS Software & Elektronik GmbH
• Extension of value chain in electronics manufacturing strengthens independence
• Previous Managing Director remains on board at AMS
• Substantial sales contributions expected as of August 2023
• Significant EBITDA contribution after operational integration into SBF Group processes

Leipzig, 1 August 2023 – SBF AG (ISIN: DE000A2AAE22; hereinafter "SBF"), a listed supplier of LED lighting systems for rolling stock, municipalities, railways and industry, has concluded a purchase agreement for the acquisition of AMS Software & Elektronik GmbH (hereinafter "AMS"). The acquisition of the electronics manufacturing specialist is in line with the SBF Group's growth strategy and significantly extends the value chain.

"With this acquisition, we are taking a leap forward in growth that is unique in our company's history. Based on the fiscal year 2022, our annual sales revenues would increase by almost 47% - with a simultaneous significant increase in earnings at group level once our operational integration into the processes of our group of companies is completed, expected for 2024," comments Rudolf Witt, Member of the Board of Directors of SBF AG.

Acquisition of 100 % of the shares
As part of the transaction, SBF is acquiring 100% of the shares in AMS from the previous shareholder. The purchase price is in the low single-digit million euros range and will be financed with a mix of existing liquid funds and a bank loan. The company's founder and Managing Director Ivan Bajic will continue to serve on the AMS Management Board. The execution of the transaction is subject to customary conditions precedent and is expected to take place in the third quarter of 2023.

"It was important for me to find a strong partner for the long-term successful company succession of AMS. In the discussions with SBF, it became clear from the very beginning that we complement each other perfectly in terms of our product range and corporate structure. Together we can leverage synergies and continue the chosen growth path," says Ivan Bajic, Managing Director of AMS Software & Elektronik GmbH.

AMS is a specialized provider of electronics manufacturing and generated revenues of around 16.4 million euros with an EBITDA in the high six-digit range in fiscal year 2022 with around 100 employees. For more than 35 years, the Flensburg-based company has been implementing development and manufacturing projects in the fields of electronics, mechanics and software technology and has a robust customer base with customer relationships that have grown over decades. Among others, companies from the fields of lighting technology, building technology, industrial electronics, medical technology and communication technology are among the main customer groups. AMS has extensive know-how in setting up test environments and can thus respond flexibly to customer needs and develop individual solutions.

Extension of the value chain
The integration of AMS into the SBF Group noticeably extends the value chain in the production of electronic parts. At the same time, it increases independence and reduces the risk of shortages of electronic parts. In recent years, persistent supply chain problems due to external shocks caused by the pandemic or the Ukraine war had affected the SBF Group's corporate development.

"Our customer structure ideally complements that of AMS. At the same time, with uniform, professional structures, we can optimize organizational and production processes and also accelerate our distribution activities," says Witt, referring to the synergy potential of the acquisition.

Revision of the forecast
So far, in its published forecast for the full year 2023, the SBF Group has assumed significant revenue growth to more than 40 million euros and a renewed increase in EBITDA. These figures do not yet include the positive effects from the first-time consolidation of AMS - expected from August 2023. As soon as a valid statement can be made on the first-time consolidation date, the Board of Directors intends to update the forecast in line with the additional sales and earnings contributions of AMS. The acquisition of AMS will also lead to a significant increase in revenue and earnings at the Group level of SBF in subsequent years.

About the SBF Group:
SBF is a listed supplier of LED lighting systems for rolling stock, municipalities, railways and industry. With its focus on energy-efficient LED lighting, SBF is benefiting from the megatrends of climate protection and urbanisation and expects double-digit growth rates in the coming years. SBF is focusing on organic and inorganic growth to expand its range of services and increase the depth of value creation.

In the business field “Rolling Stock”, SBF is a Tier 1 supplier of complex ceiling and lighting systems for the world's leading rail vehicle manufacturers. Strong technological competence, high vertical integration and customised customer solutions are the basis for a leading market position in a market with high barriers to entry. In the “Public and Industrial Lighting” business segment, SBF offers modern and smart LED systems for the efficient lighting of industrial plants and infrastructure such as roads and railway stations.

Further information at https://www.sbf-ag.com.

Company contact:
SBF AG
The Board of Directors
Zaucheweg 4
04316 Leipzig
Tel: +49 (0)341 65235 894
E-Mail: [email protected]

Press contact:
Kirchhoff Consult AG
Alexander Neblung
Borselstraße 20
22765 Hamburg
Tel: +49 (0)40 60 91 86 70
E-Mail: [email protected]