MLP acquires DOMCURA Group – targeted expansion of a further business segment

MLP AG signed a contract to acquire the DOMCURA Group today. The purchase price for 100 percent of shares is EUR 18 million. EUR 12 million thereof will be paid in cash. The remaining sum of EUR 6 million is settled through issuing new MLP shares as a capital increase against contributions in kind. As a result, the share capital of MLP AG will increase slightly by 1.35 per cent to EUR 109,334,686.

With this step the MLP Group is entering a further, strategically relevant business segment. As an underwriting agency, the DOMCURA Group draws up, develops and realises comprehensive coverage concepts from the entire marketplace in the field of non-life insurance, which are currently used by around 5,000 market participants. DOMCURA will continue and significantly expand this successful business model. At the same time, there is considerable potential arising from the synergies with the existing MLP business, in particular in terms of process management.

In the financial year 2014, the DOMCURA Group generated revenue of around EUR 60 million and earnings before interest and tax (EBIT) of EUR 1.7 million. A positive earnings contribution is also anticipated for 2015. As of January 1, 2015, MLP is entitled to a share in profits for 100 per cent of the shares.

The capital increase will take place within the scope of the authorised capital under exclusion of subscription rights. The transaction is subject to approval by the cartel authorities.