The Carlyle Group Sells MEC Group to Messer Industrie GmbH

Munich, Germany - Global private equity firm The Carlyle Group today announced it has sold its 51% stake in MEC Holding GmbH to Messer Industrie GmbH. Messer Industrie GmbH, the holding company of the Messer family, based close to Frankfurt-am-Main, will thereafter own 100% of the MEC Group.

MEC Group was founded in October 2000 to merge Messer Cutting & Welding Group and Swiss company Castolin Eutectic Group. Messer Industrie GmbH contributed Messer Cutting & Welding to MEC Holding GmbH. MEC Holding GmbH had previously acquired Castolin Eutectic through a leveraged buyout with the support of Carlyle.

"We are delighted to be able to build on and continue MEC's successful strategy to date as the single shareholder in MEC Group," said Stefan Messer, CEO of Messer Industrie GmbH. "Herewith, the traditional fields of activity - welding and cutting and industrial gases - are reunified under the roof of the Messer family. These strong international brands will be linked through an integrated branding program. However, we do not plan to merge the two businesses."

MEC Group, based in Kriftel, near Frankfurt-am-Main is an internationally leading company in sectors "Wear & Fusion Technology," "Messer Cutting Systems," and "BIT Analytical Instruments." The company has more than 2,000 employees in 40 countries across Europe, NAFTA and Asia-Pacific, and generated €328 million in 2004. Wear & Fusion Technology is the worldwide leading specialist in welding, brazing, coating and wearplate technologies for challenging repair, surface protection and joining tasks. Messer Cutting Systems is the global leader in thermal cutting machines with oxyfuel, plasma and laser cutting. BIT Analytical Instruments is a specialist contract manufacturer for analytical and lab-automation instruments.

The MEC Group has made excellent progress since 2000 under the leadership of Carlyle. "Through the support of Carlyle, MEC Group has greatly improved its profitability and operating cash flow, and has met its ambitious targets. We believe that with Messer Industrie GmbH as an experienced and competent majority shareholder, we can continue further along the path to success," said Dr. Martin Beck, CEO of MEC Holding GmbH.

Gregor Böhm, Managing Director at Carlyle, said: "MEC was a very good investment for us, both in terms of our return, and in working with such an excellent management team. Through the sale to Messer Industrie GmbH, MEC Group will now have a solid and reliable shareholder who will be able to support the profitable sales growth strategy."

Carlyle invested in its 51% stake in MEC in June 2000 from Carlyle Europe Partners I. This announcement is the eighth successful exit from the portfolio, and the fifth since September 2004. Realised exits from the €1 billion fund include Honsel International Technologies, Tecnoforge, Beru, Riello, Materis, Andritz and Le Figaro.

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