Pfeiffer Vacuum and the Busch Group sign a strategic cooperation agreement
- Cooperation should lead to competitive advantages, increased efficiency and growth
- The collaboration includes purchasing, sales and service, research and development as well as IT
- Annual medium-term synergies in a lower two-digit Euro million range expected
Pfeiffer Vacuum Technology AG (“Pfeiffer Vacuum”), a leading global manufacturer of vacuum solutions, and Busch SE (“Busch Group”) signed a contract today that governs the future internal and external strategic cooperation of both companies.
With this agreement – referred to as a relationship agreement – both companies are pursuing the goal of leveraging synergies and strengthening their position in the market for vacuum technology. Both Management Boards see particular synergies in corporate functions such as research and development activities, services, IT, sales and procurement. Pfeiffer Vacuum expects that the cooperation with the Busch Group will facilitate annual medium-term synergies in a lower two-digit Euro million range.
“We are pleased that the possible collaboration with the Busch Group, which we announced in November 2018, has now become a reality. Both companies will benefit from it. With the strategic cooperation, we will improve our competitive position in the market for vacuum technology and we will optimize cost structures” Dr. Eric Taberlet, CEO of Pfeiffer Vacuum Technology AG, comments on the conclusion of the contract.
Sami Busch, managing partner of the Busch Group, adds: „With the cooperation agreement signed today, we want to enable both companies to offer a broader product range, to improve their organization and to create added value for customers, employees and shareholders. As a family business, we are committed to the long-term and sustainable development of both companies."
In detail, the strategic cooperation includes the development of a common global product portfolio, the use of patents of the other respective contractual party, the evaluation of possibilities for cross-selling, the shared and optimized use of extensive service and sales structures as well as a group-wide pooling of purchasing and IT costs. The Busch Group holds more than 50 percent of the shares of Pfeiffer Vacuum through its subsidiary Pangea GmbH. Along with operational cooperation, the agreement provides for cooperation in the areas of compliance and risk management in order to ensure uniform standards. In the process, both companies will remain legally autonomous.
Nathalie Benedikt, CFO of Pfeiffer Vacuum Technology AG, says: “With the concluded contract, we have found a very stable partnership solution, which will strengthen the market position of Pfeiffer Vacuum. In addition, the strategic collaboration supports our medium-term goal of an EBIT margin above 20 percent.”