Beijer Alma AB (BEIA-b) has signed a letter of intent with G & L Beijer AB (BEIJ-b) to acquire the subsidiary Beijer Tech. This transaction will enable Beijer Alma to establish a new business area for technology trading. Beijer Tech has approximately 180 employees and reported revenues of MSEK 505 in 2009. The acquisition, which will be carried out as a combined share and cash transaction, is expected to be completed in March.
Beijer Tech is a technology trading company focused on developing and improving customer processes and products. The company sells consumables and equipment to the industrial sector and has six product areas: surface treatment, foundry, steelworks and smelters, fluid technology, industrial rubber and services. Sweden is Beijer Tech’s largest market. The company has six subsidiaries, with offices in 13 locations in Sweden, Norway and Finland. Beijer Tech has approximately 180 employees and reported revenues of MSEK 505 in 2009.
“We have worked for a long time to establish a third business area and Beijer Tech fulfils the requirements we have set for such an area. The company is well managed and profitable, has a positive cash flow and its broad operations offer promising growth potential in the form of organic growth and supplementary acquisitions,” says Bertil Persson, President and CEO of Beijer Alma. “We anticipate that the acquisition of Beijer Tech will increase the Group’s earnings per share as early as 2010 and we look forward to developing our operations in cooperation with Beijer Tech’s management.”
The acquisition will be carried out as a combined share and cash transaction comprising 2,700,000 newly issued Class B shares in Beijer Alma and MSEK 38.7 to be paid in cash on the closing date. Based on the average share price in January 2010, this corresponds to a purchase consideration of MSEK 299. The new share issue will be implemented within the framework of the authorization granted to the Board of Directors at the 2009 Annual General Meeting. The transaction is expected to be completed in March.
“The combined share and cash transaction will enable us to retain our financial strength. This will provide us with opportunities to continue expanding organically and through additional corporate acquisitions in both Beijer Tech and other Group companies,” explains Bertil Persson.
“This transaction is a natural step in our development toward a stronger focus on cooling systems and cooling components, which are our core operations,” says Joen Magnusson, CEO of G & L Beijer. “At the same time, we are extremely confident in the continued development of the area of technology trading, which we will be monitoring closely now that we are becoming a major shareholder in Beijer Alma.”
“Beijer Alma already conducts component manufacturing operations, but we see excellent potential for further expansion in the area of technology trading in the Nordic region, as well as other areas of Europe,” says Bertil Persson. “Our mantra is ‘profitable growth’ and Beijer Tech fulfils our growth criteria – its products and services offer a high level of customer value, it holds strong market positions in the Nordic manufacturing industry and has a well-diversified customer portfolio.”
For more information, please contact:
Bertil Persson, CEO, Beijer Alma, Telephone +46 (0)8-506 427 68, Mobile +46 (0)70-590 89 58, info@beijer-alma.se
Joen Magnusson, CEO, G & L Beijer, Telephone +46 (0)40-35 89 00
Beijer Alma AB (publ) is an international industrial group focused on component production. The company’s business concept is to acquire, own and develop small and mid-sized companies with favorable growth potential. The Group includes Lesjöfors, an industrial supplier of industrial springs, wire and flat strip components, and Habia Cable, one of Europe’s largest manufacturers of custom-designed cables. Beijer Alma is listed on the NASDAQ OMX Stockholm Mid Cap list.