Metall Zug and Miele create joint venture in Infection Control and Life
Science area - Belimed and Steelco bundle forces

Metall Zug AG / Key word(s): Joint Venture
Metall Zug and Miele create joint venture in Infection Control and Life
Science area - Belimed and Steelco bundle forces

28-Nov-2023 / 06:30 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 LR
The issuer is solely responsible for the content of this announcement.

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Ad hoc announcement pursuant to Art. 53 Listing Rules of SIX Swiss Exchange

Zug, November 28, 2023 - Metall Zug and Miele have signed an agreement under
which Metall Zug will contribute Belimed AG and Belimed Life Science AG, and
Miele will contribute the Steelco Group into a new joint venture to be
established. Metall Zug will participate in the joint venture based in Zug
with 33% and Miele with 67%.

Metall Zug will contribute its Business Unit Infection Control and the
Belimed Life Science Group, and Miele will contribute its Steelco Group,
into a new joint venture to be established in Zug, Switzerland. Metall Zug
will receive a 33% stake in the joint venture. The joint venture will be
jointly managed, with Metall Zug providing two out of the five board
members. Operational management is intended to be carried out by a composite
team with representatives from Belimed, Steelco and Miele. A shared brand
identity is planned for the future, which will take into account the roots
of both companies.

The transaction is subject to the approval of the relevant authorities. The
approval of the authorities is expected in the first half of 2024.

Background and market environment

The global healthcare and life science market has become one of the fastest
growing industries worldwide in recent years. Demand for equipment, services
and chemicals for the cleaning, sterilization and disinfection of medical
and surgical instruments and of pharmaceutical products has grown. This is
mainly due to the increasing number of medical surgeries and the increased
requirements for hygiene standards in hospitals and laboratories. Life
Science is further benefiting from the continued re-shoring of
pharmaceutical manufacturers and capacity expansions in the production of
vaccines and cancer medications.

The increasing number of sterilized goods results in customers demanding
higher throughput, faster cycle times, higher automation rates and
integrated solutions. This is linked to investments in additional
capacities, new technologies and overall digitalization.

Aim of the transaction

The transaction represents a unique strategic option for both companies
involved and offers a promising and sustainable perspective in the combined
group. 'Steelco and Miele are strong and reliable partners whose dynamic
growth and long-standing expertise make them an excellent match for us and
our shared plans for the future', explains Martin Wipfli, Chairman of the
Board of Directors of Metall Zug AG. The combination will significantly
strengthen the market position of both companies. Through the bundling of
their forces in the joint venture, Belimed and Steelco can speed up their
development to become the most innovative and customer-oriented provider in
the field of infection control and life science. The joint venture aims to
combine the best of both companies by exploiting synergies, sharing know-how
and experience, and optimizing the global production and distribution
network, while at the same time driving forward the development of
high-quality products and digital solutions. The combination will release
growth and cost synergies on the one hand but will also involve additional
investments on the other.

Together, Belimed and Steelco have set out to become the most reliable
partner for complete solutions and to offer customers a unique approach.
Belimed is characterized by its strong regional presence in growth markets,
particularly in the USA and China, with a large installed base and a strong
service business. Belimed also has excellent expertise in the area of new
digital solutions (SmartHub). Steelco, on the other hand, brings its broad
and competitive portfolio of washer-disinfectors, its fast innovation cycles
and its expertise in automation and workflow management. In addition,
Steelco has a strong presence in Europe.

Advantages of the joint venture for customers and employees

The customers benefit from an expanded and more efficient product portfolio
with customized solutions as well as from a competent and fast service. At
the same time, there is potential for synergies in research & development,
production, marketing and service for an even more innovative,
customer-centered approach.

The joint venture partners as well as Belimed and Steelco share comparable
values and complement each other in their markets, products and competences.
The transaction will open up new perspectives and growth opportunities for
all parties involved, including the employees. To be successful, the joint
venture is relying on their cooperation, expertise and experience.

Long-term commitment of the Metall Zug Group - Further milestone in the
implementation of the strategy

In 2019, the new strategy was communicated to transform Metall Zug AG into a
holding company with substantial investments in attractive industrial
companies. The transformation was initiated in 2020 with the spin-off and
independent stock exchange listing of V-ZUG, in which Metall Zug since then
holds a 30% stake. In 2022, the second step in the implementation of this
strategy was taken with the combination between Schleuniger and Komax and a
25% stake. The pending joint venture between Belimed (Infection Control and
Life Science) and Steelco represents a further milestone and the final
planned step in the implementation of this strategy. Metall Zug will focus
strategically and operationally on the development of its fully controlled
Business Units Medical Devices, Technologycluster & Infrastructure and of
Gehrig Group AG. The interests held in V-ZUG, Komax and the joint venture
with Steelco are strategic and long-term investments in which Metall Zug is
confident of their value development.

The joint venture is designed for a period of 10 years. Metall Zug makes a
long-term commitment - both financially and in terms of personnel
engagement. The areas of Infection Control (hospital sector) and Life
Science (pharma and laboratories) will remain largely independent Business
Units within the joint venture, with a focus on the respective specific
customer needs.

In the financial year 2022, the Belimed Group (Business Unit Infection
Control) and the Belimed Life Science Group together achieved net sales of
CHF 229 million and EBIT of CHF -2.3 million with around 1,300 employees.
The Steelco Group achieved net sales of EUR 194 million and EBIT of EUR 14
million in 2022 on a comparable basis with around 800 employees.

Investor call

Metall Zug will hold an investor call today, November 28, 2023, at 10:00
a.m. CET, to further explain the proposed transaction. Dial-in details can
be obtained via bettine.killmer@metallzug.ch.

About the Metall Zug Group
Metall Zug is a group of industrial companies headquartered in Zug. The
Group has around 2,300 employees and comprises four Business Units:

* Infection Control (Belimed Group)

* Medical Devices (Haag-Streit Group)

  * Technologycluster & Infrastructure (Tech Cluster Zug AG, Urban Assets
    Zug AG)

* Others (Belimed Life Science Group, Gehrig Group AG and Metall Zug)

The holding company Metall Zug AG is listed in the Swiss Reporting Standard
of SIX Swiss Exchange in Zurich (type B registered shares: securities number
3982108, ticker symbol METN).

Legal Notes
The expectations expressed in this announcement are based on assumptions.
Actual results may vary from those anticipated. This announcement is
published in German and English. The German version is binding. Metall Zug
AG processes personal data in accordance with its privacy statement
available under: https://www.metallzug.ch/en/datenschutzerklaerung.

   Key dates
   March 11, 2024                  Publication Annual Report 2023
   April 26, 2024                  Expected date for ordinary Annual
                                   General Meeting of Shareholders 2024
   August 08, 2024                 Publication Half-year Report 2024

   Further information
   Urs Scherrer Chief Financial    Bettine Killmer Head of Corporate
   Officer Phone: +41 58 768 60    Communications & IR Phone: +41 58 767
   50                              60 50

or: investorrelations@metallzug.ch

This announcement is available at
https://www.metallzug.ch/en/medien/medienmitteilungen and the investor
presentation at
https://www.metallzug.ch/en/investoren/geschaeftsberichte-praesentationen.


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End of Inside Information

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1782977 28-Nov-2023 CET/CEST