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The Jenoptik Group is extending its expertise in the area of technical facility systems

The Jenoptik subsidiary, M+W Zander, is acquiring segments of the technical facility systems unit of the Krantz TKT Group, a subsidiary of Babcock Borsig AG.

The Jenoptik Group is strengthening its Clean Systems business division. Effective August 1, 2002, the Jenoptik subsidiary M+W Zander is taking over parts of the technical facility systems unit of the Krantz TKT Group based in Bergisch-Gladbach, Germany, a subsidiary of Babcock Borsig AG of Oberhausen, Germany.

Krantz TKT is one of M+W Zander's greatest competitors on the technical facility systems market and as a technical general contractor. In addition to this area of core expertise M+W Zander is acquiring Krantz's clean systems activities and key segments of its research and development unit as well as its ventilation system component production.

M+W Zander is provisionally taking on a total of 1,150 employees and a projected sales volume of approximately 300 million euros for the next fiscal year, subject to the approval of the German Federal Cartel Office. With the consolidation of business activities, M+W Zander will not rule out the possibility of personnel-related measures subsequent to the acquisition of the Krantz units. M+W Zander anticipates that some 300 jobs will have to be eliminated.

Both parties have agreed to maintain secrecy concerning the amount being paid for the acquisition. The Jenoptik Group will not take advantage of any state aid in the form of guarantees or the like for this acquisition.

With the insolvency of Babcock Borsig AG leading to a market adjustment, Jenoptik is taking the opportunity to become the German market leader for technical facility systems through acquisition of segments of the company. The client structure and geographic presence of M+W Zander and Krantz TKT complement each other well.