Hess AG Plans IPO
Hess AG, one of the internationally established producers of outdoor and architectural lighting, is preparing for an initial public offering in the Prime Standard of the Frankfurt Stock Exchange. Hess has combined technology and individual solution expertise with high-end design and high product quality for more than 60 years, and is increasingly concentrating on the high-growth LED market. Hess is regarded as an LED pioneer: the world’s first LED external light, which Hess developed, was deployed in 2003.
Hess develops and distributes “structured and functional” external lighting for streets, squares and public spaces, as well as architectural and building-related lighting. Appropriate urban equipment, such as park benches, rounds out the product range.
With the acquisition of emdelight GmbH in March 2012, Hess expanded its positioning on the global market for artistically structured lighting solutions, thereby securing direct long-term access to the international project business. Projects realized by emdelight include illuminating the facade of the Commerzbank’s head office in Frankfurt, and recently, the 8.5 km-long Barwa Commercial Avenue shopping centre in Qatar.
The Hess Group generated €68.1 million of (IFRS) revenue in the 2011 financial year, and €5.6 million of earnings before interest and tax (EBIT), representing an 8.2% EBIT margin. The company further accelerated its growth rate in the first half of 2012, achieving approximately 39% revenue growth. The dynamically growing LED share of revenue already stood at 22.6% in 2011, compared with 4.9% in 2009.
The IPO issue proceeds are to be utilized primarily to finance further growth. “We are preparing consistently for the IPO, and can launch the process at any time,” commented Christoph Hess, CEO of Hess AG, who has been a third-generation manager of this family company since 2007. “Hess is excellently positioned, and is pursuing a clear growth strategy. The IPO represents the ideal financing basis for our company’s further expansion. Our innovative and energy-saving LED products enable dynamic growth over the coming years,” according to Christoph Hess, who also acts as the chairman of the Licht ZVEI sector association.
Peter Ziegler, CFO of Hess AG, added: “Our figures provide evidence of our growth potential: Hess has grown its revenue by an annual average of 14% within the past 3 years. We aim to successfully accelerate this growth thanks to the market potential and our innovative strength.”
Hess products are distributed in more than 50 countries worldwide – with a growing presence on the important lighting markets of Europe, Asia, the Middle East and America. The products are manufactured at three production locations in Germany and the USA. Hess also operates production capacities for final assembly, including in Japan and China. Hess employed an average of 360 staff during the first half of 2012.