[Leica] Blackstone buys 44% of Leica from Dr. Kaufmann

[cummer at netvigator.com (H&ECummer)]

London, Solms: The Blackstone Group (NYSE: BX) and ACM Projektentwicklung 
GmbH today announced they have agreed a strategic partnership whereby 
investment funds advised by Blackstone will acquire, indirectly through a 
holding company, a 44% minority stake in Leica Camera AG (?Leica?), to 
support Leica?s international growth plans. ACM and Blackstone have agreed 
that the value of the transaction will not be disclosed. The transaction is 
subject to regulatory approval and is expected to close in Q4/2011.

Headquartered in Solms, Germany, with 1,150 employees, Leica has a long 
tradition of manufacturing premium-segment cameras and sport optics 
products. Over the past sixty years, Leica has grown to become a leading 
German brand and is seen as the epitome of German engineering excellence and 
an ambassador of the ?Made in Germany? quality seal. Leica has become 
synonymous with the best tools of the trade, blending hand-crafted quality 
with a dedication to precision mechanics and producing the best optics the 
industry has to offer.

Building from this highly successful market position, Leica now endeavours 
to expand the business into new markets. Blackstone is seen as the right 
partner to support Leica management to achieve these goals in light of its 
global footprint, in particular with significant operations in Asia, and its 
development capital and strategic expertise.

Dr. Andreas Kaufmann, Chairman of the Supervisory Board of Leica commented 
on the transaction: ?With Blackstone we have gained an experienced and 
internationally established strategic partner, which also understands and 
appreciates the established brand philosophy and business model of Leica. 
Following the successful turnaround of the business and record sales last 
year, we are now focused on the continued development of the brand, its 
products and our growth plans into new markets such as Asia, South America 
and the Middle East. ACM has no plans to sell more shares in Leica Camera 
AG. Our long term strategy is to accompany Leica Camera in its continued 
expansion worldwide.?

Axel Herberg, Blackstone Senior Managing Director, said: ?Leica is deeply 
rooted in Germany?s history and we would like to help grow the business in a 
manner that is true to this heritage, ensuring that the entrepreneurial 
spirit that makes Leica unique is preserved. We are very excited about 
supporting Leica to secure long-term commercial relationships, specifically 
in emerging markets, and help strengthen the company?s operational and 
retailing capabilities globally.?

Leica Camera AG concluded the 2010/2011 financial year with record sales of 
? 248.8m. The Hessen-based traditional manufacturer of cameras and sport 
optics products increased turnover by 57.2 % compared to the previous year 
(? 158.2 m). The operating result (EBIT) increased almost six fold: it rose 
from ? 7.4 m in 2009/2010 to ? 41.6m. The consolidated surplus also took a 
positive turn: at ? 36.3 m it is more than eleven times the previous year?s 
figure (? 3.2m). The sales increase is attributed above all to the strong 
demand for the two camera systems, Leica M and Leica S.