Martin Professional A/S, a wholly owned subsidiary of Schouw & Co., has agreed
to divest the shares in Martin Security Smoke A/S at a price of DKK 28 million
to a Danish buyer, whose principal shareholder, Nick Bigler, CEO, has previous
experience from the security industry. The transfer of the shares will take
effect retroactively on February 29, 2008.
In the transaction, Martin is divesting all activities in the security industry,
which has not been a core business area for the company. However, Martin will
continue to manufacture smoke products for the buyer, which will continue the
business activities without using the Martin name.
Martin' s substantial production of smoke machines for the entertainment and
experience industries will not be affected by the transaction.
During its ownership of the activities, Martin has contributed to expanding and
maturing the market for smoke products to the security industry, and the
activities are believed to hold a substantial market potential. Martin' s
management believes, however, that the potential can best be exploited under the
new ownership.
The divestment of Security Smoke is expected to contribute DKK 16 million to
Martin' s and thereby to Schouw & Co.' s 2008 pre-tax profit.
