Ovako signs agreement with SSAB to acquire Tibnor Oy
Ovako has signed an agreement with SSAB to acquire steel and metals distributor Tibnor Oy in Finland. The deal has been approved by the European Commission and will now be examined by competition authorities in Finland and Estonia for final approval. The acquisition is expected to have a slightly positive impact on Ovako's operating profit and a slightly negative impact on cash flows for 2015.
"Tibnor Oy is a successful company with extensive experience as a distributor for companies including Ovako in the Finnish market. The acquisition of Tibnor Oy means that Ovako can broaden our customer offering in the Finnish market and enhance our contact with end customers regarding all of Ovako's products," says Tom Erixon, President and CEO of Ovako.
Tibnor Oy purchases, warehouses, processes and distributes steel and other metals for the engineering, process and construction industries. The company has approximately 50 employees and sales amounted to EUR 66.6 million in 2013.
Ovako's acquisition of Tibnor Oy has been approved by the European Commission and the next step is for the deal to be examined by competition authorities in Finland and Estonia for final approval.
The acquisition of Tibnor Oy in Finland should be seen as a component of Ovako's efforts to enhance its presence and collaboration with customers in new and existing markets. During 2012 and 2013, Ovako opened new sales offices in Italy, Eastern Europe and China.
Further information can be obtained from:
Viktoria Karsberg, Head of Group Communications, +46 70 209 93 96
Ovako is a leading European producer of engineering steel for customers in the bearing, transportation and manufacturing industries. Our production is based on recycled steel and includes steel in the form of bars,tubes, rings and pre-components. Ovako is represented in more than 30 countries and has sales offices in Europe, North America and Asia. Sales in 2013 amounted to EUR 850 million and the company had 2,995 employees. For further information please visit us at www.ovako.com