Vaillant refinancing acclaimed twice as Deal of The Year

Remscheid, 21 February 2005

Finance experts are praising the perfect timing, professional handling and great credibility of the Vaillant Group heating technology manufacturer in their comments on its awards for its successfully implemented refinancing. Two international financial journals in London, The Treasurer and Corporate Finance Magazine, which annually award Deals of The Year, said the Vaillant Group's transaction with 18 leading European banks was the most successful loan agreement of 2004.

"First and foremost, these awards are the confirmation of our company's successful track record of profitable growth over more than four years," said Claes Göransson, Managing Director of the Vaillant Group. "We have continually and demonstrably exceeded our targets for the most important company indicators such as sales and earnings thereby establishing the basis for the high level of credibility that the company management enjoys in the financial markets." The heating technology manufacturer, based in Remscheid, Germany, had in the course of their syndication placed debt of €625 million in the capital markets. All international banks invited were prepared to participate, so that in the end the required sum was oversubscribed by 56 per cent. This loan discharged Vaillant's earlier €1.1 million credit taken out to finance its acquisition of the British company Hepworth Plc in 2001, of which it had already repaid more than half ahead of schedule. The transaction also creates scope for further internal and external growth over the next few years.

John Foldes, Vaillant Group Finance Director, who was responsible for the negotiations, said: "This success, which has been recognised by respected professional journals, is the result of the trust placed in us by our partners in the capital markets which in turn stems from an open and professional communication policy."

What is not a matter of course for a family-owned company is that since 2001 Vaillant has published an annual report which gives comprehensive information on its balance sheet and a segmental analysis of its earnings. The Group also holds regular press conferences and management presentations to banks in which its business development, corporate strategy and goals are explained.


Contact
Stefan Jakubik
Press Officer
Vaillant Group
42850 Remscheid
Germany
Phone: +49 2191 18-3731
Mobile: +49 171 9763231
Fax: +49 2191 18-2895
E-mail: stefan.jakubik@vaillant.de
www.vaillant-group.com