Bure acquires Länia Material and Wash-IT Gruppen

Bure acquires Länia Material and Wash-IT Gruppen - new business concept in disposable and non-disposable materials Bure Health Care together with the management and stake holders of Wash-IT Gruppen has acquired 100 per cent of the shares in Länia Material AB and Wash- IT Gruppen AB. Vendor is Örebro Läns Landstings Förvaltnings AB. In connection with the acquisitions, the companies are being arranged under one company and one joint management. Bure Health Care will own 80 per cent and parts of the new management 20 per cent of the company. The new Group will be profiled with a new name and brandname during the year. The operations have an initial turnover of approximately SEK 300M on an annual basis. The objective is to list the company on the stockmarket in 3-4 years. In October 1996, Bure Health Care acquired 70 per cent of the shares in Länia Material AB from Örebro County Council. The aim is to build up a new business area in purchasing, distribution of disposable materials to the health care sector. On 31 January 1997, 35 per cent of the shares in Wash-IT Gruppen was acquired, the operations of which were previously-owned by Örebro County Council. Following today's agreement, Bure Health Care owns 80 per cent of the shares and parts of the company management 20 per cent. "During the build up of Bure Health Care, we have monitored the trend in purchasing and distribution of disposable materials to the health care sector and seen significant opportunities for improvement and effectivisation," says Hans Berggren who is now leaving his post as Head of Corporate Finance in Bure to become Deputy Managing Director in the new company. "The acquisition of Länia Material was a first step which is now followed by a substantially more extensive investment." The business concept is as a supplier-independent distributor to be responsible for the entire chain from advice to purchasing and distribution to the end-customer of both disposable and non-disposable materials. The customers are found in health care, hotels and industry. Operations are based on long-term agreements with the customers and from a business viewpoint have great similarities with Nova Medical which is also included in Bure Health Care's Business Area Medical Service. The intention of the owners is to list the company on the stockmarket in 3-4 years. "We wish to lead the development towards a brand-new concept for purchasing and distribution of disposable and non-disposable materials to the customer segment we focus on," says Ulf Jungberg. "Through large volumes and with the aid of information technology we will be able to offer the customer efficient and customer-adapted product supply which reduces the costs of the customer and raises the level of service." The Swedish market amounts to approximately SEK 7,000M in the segments in which the company operates. "We currently have a turnover rate of approximately SEK 300M and estimate that we will be able to achieve annual growth of approximately 25 per cent per annum over the next 4-5 years," says Ulf Jungberg. "Growth will take place both through additional acquisitions in Sweden and the Nordic countries and through organic growth." With the acquisition and formation of the new distribution operations, Bure Health Care's annual turnover rate will amount to approximately SEK 1,500M. Of this, Medical Service accounts for SEK 600M and Care Production for SEK 900M. Gothenburg, 30 May 1997 Investment AB Bure (publ) For further information please contact: Ulf Jungberg, Managing Director of Länia Int +46 19-19 45 00, 705-127900 Material Hans Berggren, Bure Health Care Int +46 31-335 76 35 Hans Eric Melin, Investor Relations, Bure Int +46 31-335 76 51


Documents & Links