Industrivarden to Sell Its Subsidiary Isaberg Rapid
STOCKHOLM, Sweden -- Industrivarden has signed an agreement to sell its last remaining wholly owned operating subsidiary, Isaberg Rapid, to the private equity firm Segulah. The buyer is expected to take possession of the company in January 2007. Upon the sale, Industrivarden will have achieved its goal to work only as an active owner with a transparent portfolio of large and midcap listed Nordic companies. The purchase price amounts to more than SEK 500 M, generating a capital gain of nearly SEK 100 M.
Isaberg Rapid has been a wholly owned subsidiary of Industrivarden since 1992. During the last fifteen-year period, Industrivarden has helped develop Isaberg Rapid into a global player in stapling for the office and tool markets. Isaberg Rapid is today Europe's leading company in stapling, with sales in 140 countries. During Industrivarden's ownership, sales have increased from approximately SEK 300 M to roughly SEK 1 billion today.
Commenting on the deal, Anders Nyrn, President and CEO of Industrivarden, said: "Isaberg Rapid is positioned today as a leading manufacturer of stapling products. How-ever, mounting price competition and changed distribution patterns put high demands on change. After completing strong structural and efficiency-improvement measures, Isa-berg Rapid is once again showing good profit growth. Against this background and the fact that Industrivarden's strategy is to work with active ownership in a transparent and concentrated equities portfolio in large and midcap listed Nordic companies, we are now selling our only remaining operating subsidiary."
The sale is contingent upon approval from the competition authorities.
Stockholm, December 13, 2006
AB INDUSTRIVRDEN (publ.)
Industrivarden is a long-term industrial developer of public companies. For more information visit our website: www.industrivarden.net.
This information was brought to you by Waymaker http://www.waymaker.net
Isaberg Rapid has been a wholly owned subsidiary of Industrivarden since 1992. During the last fifteen-year period, Industrivarden has helped develop Isaberg Rapid into a global player in stapling for the office and tool markets. Isaberg Rapid is today Europe's leading company in stapling, with sales in 140 countries. During Industrivarden's ownership, sales have increased from approximately SEK 300 M to roughly SEK 1 billion today.
Commenting on the deal, Anders Nyrn, President and CEO of Industrivarden, said: "Isaberg Rapid is positioned today as a leading manufacturer of stapling products. How-ever, mounting price competition and changed distribution patterns put high demands on change. After completing strong structural and efficiency-improvement measures, Isa-berg Rapid is once again showing good profit growth. Against this background and the fact that Industrivarden's strategy is to work with active ownership in a transparent and concentrated equities portfolio in large and midcap listed Nordic companies, we are now selling our only remaining operating subsidiary."
The sale is contingent upon approval from the competition authorities.
Stockholm, December 13, 2006
AB INDUSTRIVRDEN (publ.)
Industrivarden is a long-term industrial developer of public companies. For more information visit our website: www.industrivarden.net.
This information was brought to you by Waymaker http://www.waymaker.net
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