Compo to access new consumer groups

Compo to access new consumer groups through majority buyout of Terrasan

• Strategic expansion of product portfolio and extension of international sales network
• Hans-Jürgen Riehl, Managing Director and shareholder of Terrasan, moves up to the Compo executive board
• Takeover financed entirely by equity capital
• Efforts to resume production at Krefeld location continue unabated

Münster, 31 October 2012 - Compo GmbH & Co. KG is taking over Terrasan Haus + Gartenbedarf GmbH & Co. KG, a manufacturer of home and garden products, headquartered in Rain am Lech. Terrasan Managing Director and shareholder Hans-Jürgen Riehl will join the Compo Board of Directors, which also includes Martin Bertinchamp, Jens Averdiek and Jens Waldau. With the acquisition, Compo will increase its turnover in the consumer segment by around one third.

The transaction, which is subject to the usual regulatory authorisation, is expected to be completed in the fourth quarter of 2012. Both parties have agreed not to disclose the purchase price. The takeover is being financed entirely by new Compo equity capital provided by Triton, Compo's owner since 2011.

"The main benefit of acquiring Terrasan is the expansion of our current product portfolio, which will enable us to access new consumer groups. We are adding another element to Compo's business and strengthening the company's market leadership in Europe," said Martin Bertinchamp, Interim CEO of Compo. The transaction will also allow Compo to strengthen its international sales and production network. "The partnership with Terrasan will particularly strengthen our logistics and production networks going forward," added Martin Bertinchamp.

"The takeover by Compo is a logical strategic step from which both companies will benefit. I look forward to working with my new colleagues to further drive the development of the entire company," said Hans-Jürgen Riehl, shareholder of Terrasan and future Member of the Compo executive board.

So far owner-managed, Terrasan sells home and garden products primarily in Germany, Italy, Austria and Switzerland. Additional branches are also located in the Czech Republic, Hungary, Poland and Latvia. Following the acquisition, the new company group will have a significantly stronger presence in Europe. Terrasan has grown considerably in recent years, and has consistently expanded and modernised production capacity at its headquarters. Through its subsidiaries, Terrasan has also established its presence elsewhere in Europe. In March 2012, Terrasan opened a modern facility for producing peat-free soils in Vienna. Following the acquisition, both Compo and Terrasan brands will continue to be managed independently.

The acquisition of Terrasan is a joint strategic decision made by the Compo management and its owner Triton to further strengthen Compo's consumer business. "We are dedicated to Compo's success," said Peder Prahl, director of the General Partner of Triton Fund III. "We want to enable the company to actively pursue strategic growth opportunities and develop its business."

The decision to complete the takeover was made independently and long before the accident at the Krefeld production location. "We continue to make every effort to resume production at our Krefeld location as quickly as possible. This process remains completely independent from the integration of Terrasan into the Compo Group," said Jens Averdiek, managing director of Compo.

Compo was taken over by investment firm Triton, a specialist in developing market-leading mid-cap companies, in 2011. Since the takeover, Triton has actively supported Compo's growth.