New Wave Group AB issues a declaration of intent to acquire Sagaform AB (publ).
New Wave Group AB issues a declaration of intent to acquire Sagaform AB (publ). New Wave Group AB has issued a declaration of intent to acquire Sagaform AB, to the owners of Sagaform AB. Completion of negotiations is planned for January 2001, at which time a review of the Company will also be implemented. If successful, this will be New Wave Group AB's first acquisition/major investment in the promotional gift sector of the Corporate Clothing business area. For 2000, Sagaform AB will show sales of approximately 78 million SEK, and a loss of six million SEK. At present, Sagaform AB distributes corporate clothing, but mainly sells its products under the Sagaform brand mostly to retailers in Sweden. The loss for 2000 is mainly due to the start up of new companies in Germany and elsewhere. The profitability history has been excellent, and the company expects a profit for 2001. This acquisition is perfect for New Wave Group AB, since Sagaform AB has a strong trademark, is adept at design and purchasing, and has a product range that to a large extent is appropriate for the corporate clothing market. According to the joint plan, Sagaform is to launch a catalogue containing a small collection as early as in January 2001, and immediately become part of the Cyberwave e-commerce company. Autumn of 2001 will see the presentation of a larger collection for the corporate clothing market, and the beginning of a launch outside of Sweden. New Wave Group AB feels that this will result in the rapid future growth of Sagaform AB, reinforce New Wave Group AB's concept and enlarge the range of corporate clothing offered by Cyberwave, New Wave Group AB's e- commerce company. New Wave Group AB also soon expects to be one of the leading suppliers in the higher end promotional gift market in Scandinavia, and gradually build up its presence in the rest of Europe. New Wave Group AB also intends to establish or acquire other companies in the area of simpler, less expensive promotional gifts, and thereby assume a leading position in this area of corporate clothing and gifts, as well. This acquisition, if implemented, is expected to have a favourable impact on the profits and shares of New Wave Group AB as early as in 2001. However, the benefit should mainly be felt in the fourth quarter, after negative impacts in the first and second quarters. Jörgen Bender appointed as Controller Jörgen Bender, formerly the Controller of New Wave Group AB, and later the Director of Purchasing, will now reassume his previous position as Controller, on a permanent basis. New Wave Group AB will instead recruit a new Director of Purchasing. Borås, 21 December 2000 New Wave Group AB (publ) Torsten Jansson Managing Director För ytterligare information kontakta: Torsten Jansson Managing Director Phone: +46 (0)708-99 80 50, +46 (0) 33-22 58 55 Jörgen Bender Controller Phone: +46 (0)708-99 80 55, +46 (0) 33-22 58 54 ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2000/12/27/20001227BIT00260/bit0001.doc http://www.bit.se/bitonline/2000/12/27/20001227BIT00260/bit0002.pdf