MECALUX Signs Contract for Acquisition of Interlake Assets

13 Jan 2009

Mecalux, via its subsidiaries Mecalux USA Inc and Mecalux México S.A. de C.V., has signed a contract with UFC Interlake Holding Co., United Fixtures Company, Inc., Interlake Material Handling, Inc. and Conco-Tellus Inc. for the possible acquisition of their assets. The assets expected to be acquired include the Pontiac (Illinois) and Sumter (South Carolina) plants, the sales network, industrial property rights and the Group’s Mexican subsidiaries, owners of the Mexicali and Matamoros plants. The acquisition would cost $30 million and be fully financed by shareholders equity.

Investment Opportunities for the Group
In January 2007 Mecalux acquired a call option on the American group UFC Interlake Holding Co. for 5.8 million euros, permitting it to acquire the company for a multiple of between seven and eight times the Group's consolidated EBITDA before the end of 2008.

The decision by Mecalux's Board not to exercise its purchase option on UFC Interlake Holding Co. was announced on 4th November.

However, the operation’s new financial conditions and the different legal advantages anticipated under Section 363 of the Bankruptcy Code constitute a good investment opportunity for Mecalux that would enable it to expand its presence in the US and Mexico.

The signing of the contract has followed the procedure anticipated under the abovementioned Section 363 of the US Bankruptcy Code whereby vendor companies should file for Chapter 11 bankruptcy. The procedure holds that a sale is subject, among other conditions, to no third party presenting a purchase option in the pubic auction called to that end which, in the opinion of the American court in question, is more attractive for the creditors and shareholders of vendor firms.

Mecalux, S.A. will publish the result of the auction in the pertinent bulletin. The formalization of the sale, once all the conditions of the operation are met where applicable, would take place during the first quarter of 2009.

The economic and financial information referred to in this press release was drawn up in accordance with International Financial Reporting Standards.

Future forecasts
This document may contain information or statements regarding forecasts in relation to the Mecalux group. These statements include financial forecasts and estimates, and the suppositions on which they are based, statements referring to plans, goals and expectations for operations, future products and services, and statements regarding future performance and business integration. Forecasts can be identified by terms such as “believe”, “expect”, “predict”, “estimate”, “goal” or other similar and conditional terms. Although the Mecalux management and team understands that the previsions reflected in these forecasts are reasonable, investors and shareholders in Mecalux should remember that forecasts are subject to numerous risks and uncertainties, many of which are difficult to predict and are generally beyond Mecalux’s control. Due to these risks and uncertainties, the real results and changes may be significantly and adversely different to that set forth, whether explicitly or implicitly, or predicted in the abovementioned forecasts. Mecalux accepts no obligation to maintain its forecasts publicly updated, whether due to new information, future events or other reasons, and expressly warns receivers of this information not to place undue trust in estimates, predictions or forecasts.