Bong becomes market leader in U.K. by acquiring Rexam Envelopes

Bong becomes market leader in U.K. by acquiring Rexam Envelopes Bong acquires as per September 15, 2000 the British envelope business, Rexam Envelopes. The Seller is Communisis Plc., noted on the London Stock Exchange. Rexam Envelopes, being one of U.K.'s leading envelope companies, had in 1999 revenues of approx. 16 MGBP, manufactures around 1,4 billion envelopes and has approx. 140 employees. As a result of the acquisition, Bong will have combined revenues in the U.K. of over 50 MGBP and thus will become the market leader. Rexam Envelopes is located in Milton Keynes north-west of London, where also Bong/Bauwens current British operations are located. The two businesses are intended to be merged and the possibilities to achieve substantial synergies are regarded excellent. Bong acquires the business from Rexam Envelopes by taking over its assets (stock, machinery, property etc.) for, in principal, its book values. The consideration is approx. 100 MSEK. The financing of the acquisition is initially funded by means generated by Bongs sales of property in Kristianstad and Nybro. All personnel is assumed by Bong. Bong is today Europe's leading envelope manufacturer. The Bong Group has revenues of some SKr 2.5 billion, approximately 1,800 employees and an annual production of some 15 billion envelopes at its factories in Sweden, Denmark, Norway, Finland, Germany, Great Britain, Ireland, Belgium, Poland and Estonia. Through the acquisition of Rexam Envelopes, Bong strengthens it's already leading position and will have approx. 16% of the European market. In recent years, Bong has played an active part in the current process of restructuring in the European envelope industry and sees useful potential for further expansion. Kristianstad, Sweden, September 18, 2000 BONG LJUNGDAHL AB Lennart Pihl MD and CEO For further information please contact: Lennart Pihl, Managing Director and Group Chief Executive of Bong Telephone: +46 44 20 70 50 or mobile +46 70 594 68 66 ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2000/09/18/20000918BIT00340/bit0001.doc http://www.bit.se/bitonline/2000/09/18/20000918BIT00340/bit0002.pdf

About Us

Bong manufactures and markets a complete range of envelopes for all type of users.

Subscribe