BEWi - Interim Report, January–March 2018
Press release 2018-05-17, at 08:00
COMMENTS BY CEO
The first quarter of the year was dominated by the acquisition of Synbra B.V., a Dutch specialist in cellular plastics with operations in Northern Europe and Portugal. Both companies are established manufacturers of construction and packaging solutions, with supplementary operations. The consideration was MEUR 117.5, and the acquisition signifies a more than doubling of BEWi’s operations. Completion of the acquisition has been subject to financing and approval by works councils and competition authorities.
Financing comprised a private placement of shares, a bond issue and own funds.
Through this private placement, the Norwegian company Gjelsten Holding AS joined BEWi as a new share owner, and owns 21.4% of the shares. We are pleased to bring in Gjelsten Holding, an investment company with an excellent reputation that primarily focuses on properties and industry, as an owner. Of the remaining ownership, Fröya Invest AS owns 51.6%, Verdane Capital Advisors owns 25.4% and BEWi’s senior executives own 1.6% of the shares.
We received another confirmation of the capital market’s confidence on April 12, when we successfully issued a senior secured bond of MEUR 75, with a framework of MEUR 100 and maturity in 2022. As regards own funds, we divested properties in Denmark and Sweden.
All the conditions were thus met this spring for the acquisition, so that we could conclude the affair on May 14. The work on merging the BEWi Group and Synbra into one group can thus begin. In an integration plan, a number of areas have been identified in which we will analyze the operations in both companies in order to establish best practice and take decisions on the optimal structure, work flows, staffing and so on.
In a press release from March 22, preliminary financial information for the last 12 month period was presented for the combined BEWi-Synbra, showing an EBITDA before items affecting comparability of MSEK 420. As of March 31, the same preliminary number was MSEK 429, driven by good profits in both groups.
During the first quarter we also acquired Ruukin EPS, which produces insulation products in a plant in Ruukki, Finland. Ruukin EPS will give us better geographic coverage in Finland, and will be a valuable supplement to our existing operations in the country.
For further information, contact Marie Danielsson, CFO
Tel: +46 70 661 0047
The information is such that BEWi Group AB (publ) is required to disclose in accordance with the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 8:00 a.m. CET on May 17, 2018
BEWi Group manages and controls the entire chain from the manufacture of raw materials to finished products for the construction, packaging, and technical packaging industries. We invest in new techniques and development of innovative environmentally sound products, which creates value across the chain. As the market continues to grow, BEWi will also grow, both organically as well as through acquisitions in order to create positive synergies around purchases, raw material management, marketing information, customer focus, efficient production and administration.
BEWi Group is owned to 51.6% by Frøja Invest AS, to 21.4% by Gjelsten Holding AS, to 25.4% by Verdane Capital Advisors and to 1.6% by Senior Executives.