Blue Cap AG expands portfolio with the acquisition of the HY-LINE Group and adjusts forecast for the 2021 financial year

_ Acquisition of a value-added distributor and systems provider in the electronics sector
_ Significant additional diversification of Blue Cap’s portfolio
_ Forecast raised for 2021 financial year: Revenue projected to increase to EUR 265 million to EUR 275 million with an expected (adjusted) EBITDA margin of 8% to 9%
_ Additional growth in EBITA and earnings per share of >20% expected in the first full financial year of 2022

Munich, 5 August 2021 Today, Blue Cap AG agreed the acquisition of a qualified majority shareholding of more than 90% of the shares in HY-LINE Verwaltungs GmbH (hereafter “HY-LINE”) and its four operating subsidiaries from a group of private investors for a purchase price in the lower third of the double-digit millions. The management team of HY-LINE took a substantial single-digit percentage stake in the acquisition. The acquisition of the shares in HY-LINE is expected to be completed on 1 September 2021.

The HY-LINE Group was founded in 1988 and has its origins in the value-added distribution of electronic components. Over the last few years the company has transformed itself into a product and systems supplier with a special focus on technical consulting and development expertise. This means that HY-LINE enters the value chain even earlier and creates additional added value for its customers by developing its own products and systems. Its customers primarily come from the electronics industry, medical technology, the energy sector and the media and communications industry. Its main sales markets are Germany, Austria an d Switzerland.

With around 80 employees at four locations, HY-LINE generates revenue of EUR 40 million to EUR 50 million every year. The current challenges in the global supply chain for electronic parts are offset by high incoming orders and backlog and a fundamentally positive market outlook. Tobias Hoffmann-Becking, CIO of Blue Cap, commented: “HY-LINE has an exceptionally differentiated and less capital-intensive business model. Megatrends such as the internet of things, smart home and Industry 4.0, as well as the positive long-term outlook for the individual end markets such as medical technology, create excellent market conditions and the opportunity for further growth. The expected economic upturn and the existing pipeline for new orders increase this potential even more. We look forward to working with the HY-LINE team on taking this growth to the next level.”

An important driver of the company’s success is the high level of development and consulting expertise in the product design phase, which leads to a high proportion of recurring sales during the product’s life cycle. The high level of diversification in terms of industries and long-standing and trusting relationships with customers and suppliers serve to strengthen the sustainable and stable business model. Blue Cap also sees potential in the continuation of its internationalisation efforts and in increasing the share of the company’s own products and system developments.

Due to the less capital-intensive business model compared to the existing portfolio, HY-LINE should increase the Blue Cap Group’s EBITDA and earnings per share by 20% or more in the first full year following its acquisition. Blue Cap’s Management Board is adjusting its forecast for the current year (2021). It now expects revenue of around EUR 265 million to EUR 275 million (previously: EUR 255 million to EUR 265 million) and an adjusted EBITDA margin as before of 8% to 9%, subject to further acquisitions and disposals of shareholdings.

Hello, my name is Lisa Marie Schraml

Investor Relations & Corporate Communications

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