IBU-tec advanced materials AG has purchased a 100% interest in BNT Chemicals GmbH

> BNT Chemicals is a specialist for wet chemical processes, manufactures its own, mainly tin-based products, and will substantially expand IBU-tec’s positioning in the market

> New forecast for IBU-tec: annualised revenue for 2018 after the purchase of EUR 45-50 million and annualised EBITDA before acquisition costs for 2018 of EUR 5.5-7 million

>Additional medium-term revenue and earnings potential from addressing new markets, synergies and further optimisations at BNT Chemicals

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Weimar – 21.06.2018. IBU-tec advanced materials AG ("IBU-tec", ISIN: DE000A0XYHT5) today signed an agreement to acquire a 100% interest in BNT Chemicals GmbH (“BNT Chemicals“) as of 2 July 2018. IBU-tec can fully finance the purchase price from the funds generated through its 2017 IPO, leveraged with additional bank loans. BNT Chemicals has its registered office in the Bitterfeld Chemical Park and focuses on “wet chemistry”. It thus supplements IBU-tec’s current core business of thermal processing. In a typical chemical value-added chain wet chemical processes are often followed by drying processes and, in some cases, further thermal treatments. Inversely, most thermal process steps are in some way preceded by a wet chemical method. In addition to the process technology, BNT has its own products in the organic tin compounds segment, for use in chemical catalysts, the pharmaceutical industry, glass coatings and raw materials and as a product provider, BNT diversifies IBU-tec’s positioning as a service provider for the chemicals industry.

As a result of the acquisition IBU-tec has significantly raised its revenue and earnings forecast for the fiscal year 2018. The company had previously been forecasting revenues to grow from EUR 16.8 million in 2017 to EUR 18.5-20 million. The company now believes that, based on the combined forecasts for this calendar year, annualised revenues (pro forma) will total EUR 45-50 million. EBITDA totaled EUR 4.3 million prior to IPO costs in 2017, with a forecasted increase of 10-20 percent for 2018. After the acquisition, IBU-tec is expecting annualised EBITDA in the current year of EUR 5.5-7 million prior to the one-off effects of the acquisition. Despite the acquisition costs, the one-off effects of the acquisition can even turn into positive, due to recoverable assets which do not form part of BNT Chemicals core business.

IBU-tec is expecting further revenue and earnings increases in the coming years. These will result from addressing new markets and customer groups, leveraging synergies between the
two companies and additional optimisations to margins, in particular at BNT Chemicals. At the same time as the acquisition of BNT, and in order to sustainably expand its product portfolio and to continually develop existing products, IBU-tec has concluded a strategic alliance with TIB Chemicals AG, BNT’s former parent company. TIB Chemicals AG is a leading global provider for organic tin compounds and thus a strong partner in that field.

With the acquisition of BNT Chemicals IBU-tec is continuing on-track with its growth strategy. A new location with an extended infrastructure for the production of new material groups was acquired just a few weeks ago in the Bitterfeld Chemical Park in order to establish additional capacity for IBU-tec’s own core business. The site will be taken into operation in the current year. The acquisition of BNT Chemicals is now a further step in IBU-tec’s growth, driving the company’s operations and profitability ahead into a new dimension. BNT Chemicals was formed in 1998, currently has around 85 employees and has established an international customer network from its Bitterfeld offices, including a large number of well-known groups. BNT Chemicals’ chemical applications are a core component of a large number of products, for example in the chemical, pharmaceutical, automotive and the construction industry - areas of application in which, with the exception of the pharmaceutical industry, IBU-tec is already active and sees major further potential for development. In selected products, BNT Chemicals already has a substantial share of the respective global market.

BNT Chemicals has undergone an extensive operational, organisational and economic restructuring in the past few years. Revenues increased in 2016 and 2017 by a double-digit percentage. The company is profitable in terms of all of its earnings indicators. IBU-tec believes that there is still substantial potential for optimisation over the short to medium term. IBU-tec can, amongst other factors, rely on the extensive experience of its CEO Ulrich Weitz to integrate the company and leverage the identified potentials. Prior to acquiring IBU-tec, Mr. Weitz held various management positions with major international engineering companies, and was responsible for integrating, modernising and converting manufacturing elements of the companies. Leveraging organisational synergy potential will also be supported by the fact that BNT Chemicals’ registered office in Bitterfeld is at a linear distance of 1.5 km of IBU-tec’s location in the chemicals park.

Ulrich Weitz, IBU-tec advanced materials AG’s CEO and majority shareholder: “Our acquisition of BNT Chemicals GmbH is one of the most important milestones in our company’s history to date. At once IBU-tec has become a company equally versed in wet chemical and thermal processes. In future we will be able to offer our own products in addition to our tried and trusted and, in some cases, extended services. Our strategic alliance with TIB Chemicals will also substantially strengthen our company’s innovation potential, allowing us to grow more directly and sustainably. We have increased our forecast
significantly for the current year, with annualised revenue up by around 150 percent year-on-year. This is a further indicator as to the importance of this acquisition for IBU-tec. We have implemented the acquisition process very thoroughly and with the greatest of care, and we have received excellent support from the team at Mayerhöfer & Co., led by Christoph Höfer.”

In view of the acquisition of BNT Chemicals, IBU-tec’s Managing Board will hold a telephone conference for journalists and institutional investors.

The telephone conference will take place on Friday, 22 June 2018 at 12 noon.

The telephone conference can be reached by interested media representatives and institutional investors using the number +49-(0) 69 271340800. You can receive the requisite participation code for this telephone conference from edicto GmbH. In this regard please contact Sandra Schwarz, Tel.: +49 (0) 69-905505-50 or by e-mail: sschwarz@edicto.de.

About IBU-tec
IBU-tec advanced materials AG is a highly-specialised, high-growth development and production service provider for the industry for thermal process technology to treat inorganic powders and granules. These methods change and enhance the materials’ properties. IBU-tec uses its broad, international customer base to address global mega-trends, such as green mobility (eMobility and automotive catalysts), the green economy (including construction materials with reduced CO2, rare earths, stationary energy storage) and medical technology (including artificial joints and dental replacements) IBU-tec’s market success is based on its own technology platform which can be used flexibly, its unique, patent-protected processes and the end-to-end expertise of its total of around 150 employees.

You can find more information at www.ibu-tec.de.

edicto GmbH Axel Mühlhaus Eschersheimer Landstraße 42-44 60322 Frankfurt Tel. +49 (0) 69-905505-52 E-mail: IBU-tec@edicto.de

IBU-tec advanced Materials AG Max Narr Hainweg 9-11 99425 Weimar Tel. +49 (0) 151 67955683 E-mail: max.narr@ibu-tec.de

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