Renewal of IPO shareholder agreement at Burckhardt Compression
February 09, 2011
The five management shareholders who participated in the management buyout in 2002 and who issued the IPO of Burckhardt Compression in 2006 have informed the Company that they have decided to sign a new shareholder agreement for another five years until 2016. At the same time the shareholder group has disclosed that its aggregate holdings of Burckhardt Compression shares have fallen below the disclosure threshold of 15% to 14.8%.
In April 2002 the Sulzer Corporation divested the Sulzer Burckhardt division through a management buyout. Five members of Sulzer Burckhardt’s management together with the financial investor Zurmont acquired the company. The former Sulzer division has since operated under the name Burckhardt Compression. In June 2006 Zurmont sold its entire stake in Burckhardt Compression through the IPO. At the time of the initial public offering, the five members of the management, who then owned 20.9% of the Company’s shares, concluded a shareholder agreement with a five-year term.
The original five management buyout shareholders, one of whom left the Executive Board in 2008, have notified the Company that they have decided to conclude a new shareholder agreement with a term of five years once the current agreement will expire (June 30, 2011). Today the same group of shareholders has also disclosed that its aggregate holdings of Burckhardt Compression shares have declined from 15.0% to 14.8%.
“We are pleased that the five key individuals centered around Valentin Vogt have confirmed their long-term commitment to Burckhardt Compression by renewing the shareholder agreement,” says Hans Hess, Chairman of the Board of Directors of Burckhardt Compression Holding AG. “At the same time, it is also understandable that some members of the original management buyout would like to diversify the very high percentage of their personal financial investment in Burckhardt shares.”
About Burckhardt Compression
Burckhardt Compression is one of the worldwide market leaders in the field of reciprocating compressors and the only manufacturer that offers a complete range of Labyâ (labyrinth piston), Process Gas, and Hyper Compressors. The compressors are used to compress, cool or liquefy gases. Burckhardt Compression’s customers include multinational companies active in the chemical, petrochemical, refinery, industrial gas and gas transport and storage industries. With the leading compressor technology, the high-quality compressor components and the comprehensive range of services Burckhardt Compression supports its customers in their effort to minimize the life cycle costs of their reciprocating compressor systems.