SMT Scharf takes over Canadian mining specialist RDH Mining Equipment

Hamm, February 7, 2018 – SMT Scharf AG (WKN 575198, ISIN DE0005751986) has indirectly acquired an interest in 100 percent of the shares in RDH Mining Equipment, based in Alban, Canada, through its wholly-owned subsidiary SMT Scharf Corporation, also based on Alban, Canada. With this acquisition, SMT Scharf AG is further pursuing its corporate strategy and strengthening its market position as an integrated system provider in the underground logistics area. The purchase price amounts to around CAD 8.0 million (corresponding to approximately EUR 5.17 million). A small proportion of the purchase price will be rendered in treasury shares of SMT Scharf AG, with the rest being paid in cash. For the cash component, SMT Scharf AG had at its disposal funds from the capital increase that SMT Scharf AG successfully realised in November 2017. The CEO of SMT Scharf AG, Hans Joachim Theiss, explains the background to the takeover: “With its portfolio of diesel and electric vehicles for non-coal and salt mining as well as tunnel construction sites, RDH possesses outstanding product expertise in this niche. The takeover forms an ideal augmentation of SMT Scharf’s portfolio to include rubber-tire vehicles and gives us an even broader positioning in the market. By aggregating the international sales and aftersales expertise of SMT Scharf with the acquired product program, we can achieve far-reaching synergies in the international hard-rock and tunnel markets, and further boost capacity utilization across our Group.” RDH has specialized in high-quality underground equipment for mining and tunnel construction for more than 30 years and has been especially active in the North American market to date with a revenue share averaging above 50%. Its varied product range extends from jumbo drilling equipment through to so-called load-haul-dump machines (LHDs), scissor lifts and lowloaders. Since 2011, the company has been one of the pioneers in battery-driven non-coal underground mining equipment. With around 50 staff, RDH generated sales of CAD 14.5 million (equivalent to around EUR 9.6 million) in its fiscal year ending April 30, 2017. “For SMT Scharf as one of the worldwide leading providers of transport solutions and
underground logistics systems, the acquisition of RDH Mining Equipment represents an important strategic milestone to further advance our growth. We are convinced the takeover will exert a positive effect on our sales revenue and earnings trends in the current financial
year,” forecasts Theiss.

Company Profile
The SMT Scharf Group develops, builds and maintains transport equipment for underground mines as well as for tunnel construction sites. The main product consists of rail-bound railway systems which are used primarily in coal mines and for the underground mining of gold, platinum and other ores. There they transport men and material up to a payload of 48 tons on routes with inclines of up to 30 degrees. SMT Scharf also supplies chairlifts to the mining industry. In addition, the company offers rubber-wheeled diesel and electric vehicles for mining and tunnelling applications through the newly acquired mining specialists RDH Mining Equipment. As a leading supplier of battery-driven vehicles with lithium-ion technology for underground mining, RDH complements SMT Scharf’s portfolio with its diverse product range stretching from loaders and scissor lifts to underground trucks. Overall, the SMT Scharf Group has its own companies in eight countries as well as distributors around the world. SMT Scharf generates most of its sales in growth markets abroad such as China, Russia, Poland and South Africa. SMT Scharf AG has been listed in the Prime Standard (Regulated Market) on the Frankfurt Stock Exchange since 2007.

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Investor Relations
cometis AG
Thorben Burbach
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Email: burbach@cometis.de