Ratos has concluded an agreement for the sale of all the shares in
the wholly owned subsidiary Hägglunds Drives to the German company
Bosch Rexroth for a share price of approximately SEK 4,300m. The sale
will generate an exit gain for Ratos of approximately SEK 4,400m. The
average annual return on Ratos's investment in Hägglunds Drives
amounts to 56%.
Hägglunds Drives is an international supplier of hydraulic drive
systems, drive motors and services, in particular for industrial
heavy duty applications. Drive systems are used in the mining,
materials handling, recycling, pulp and paper, marine and offshore,
rubber, plastics and sugar industries. The company has subsidiaries
in 16 countries with exports accounting for more than 90% of sales.
The head office is in Mellansel, outside Örnsköldsvik, Sweden, and
the company has approximately 900 employees.
Ratos became a part owner of Hägglunds Drives in 2001 in conjunction
with the buyout of Atle. Ratos has been the sole owner of the company
since 2004. During its time as a Ratos holding, Hägglunds Drives has
seen strong growth in both sales and profitability. The company's
sales have risen from SEK 892m in 2001 to SEK 1,761m in 2007 with
operating profit (EBITA) rising from SEK 75m to SEK 360m in the same
period.
Ratos CEO Arne Karlsson: "Focused efforts in recent years to
accelerate growth through investment in the sales and marketing
organisation, new markets and segments, and expanded aftermarket
services as well as extensive product development have laid the
foundation for Hägglunds Drives's positive development. Having Bosch
as its owner will enable Hägglunds Drives to continue to develop its
focus within existing segments as well as within new, attractive
segments such as renewable energy production. This will lay the
foundation for the company's continued strong growth."
Bosch Rexroth, a subsidiary within the German Robert Bosch GmbH, is
one of the world-leading suppliers within drive and control
technology. In 2007, Bosch Rexroth posted sales of EUR 5.4 billion
and had approximately 33,000 employees.
The sale will generate an exit gain for Ratos of approximately SEK
4,400m. The ultimate exit gain will be affected by the date when this
deal is finalised.
The sale of Hägglunds Drives is subject to clearance from the
relevant competition authorities.
For further information, please contact:
Arne Karlsson, CEO Ratos, +46 8 700 17 00
Per Nordgren, CEO Hägglunds Drives, +46 660 87 001
Clara Bolinder-Lundberg, Head of Corporate Communications Ratos, +46
70 719 84 43
Financial calendar from Ratos:
Interim Report January - June 2008 22 August 2008
Interim Report January - September 2008 7 November 2008
Year-End Report 2008 19 February 2009
Ratos is a listed private equity company. The business concept is to
maximise shareholder value over time by investing in, developing and
divesting primarily unlisted companies. Ratos offers investors a
unique investment opportunity. The equity of Ratos's investments is
approximately SEK 12 billion and a market capitalisation of
approximately SEK 26 billion. Ratos's holdings include AH Industries,
Anticimex, Arcus Gruppen, Bisnode, Camfil, Contex, DIAB, EuroMaint,
GS-Hydro, Haglöfs, HL Display, HÅG/RH/RBM, Hägglunds Drives, Inwido,
Jøtul, Lindab, MCC, Medisize, Superfos and Other holdings.
