STORA negotiating with Industri Kapital

STORA has entered into negotiations with Industri Kapital involving the divestment of Stora Building Products. It is expected that a final agreement will be signed later this year. In the interim, the normal review of the company will be carried out, as well as contacts with the authorities and negotiations with the trade unions. The preliminary purchase price for the shares amounts to about SEK 865 million, corresponding to STORA's book value. STORA's net debt is estimated to be reduced by about SEK 950 million following conclusion of the transaction. The divestment will conclude STORA's concentration of its operations to forest-industry operations. Stora Building Products is the leading manufacturer of doors, windows and kitchen and bathroom fittings in the Nordic region. Products are marketed under a number of well-known brands, including Swedoor, SP-Snickerier, HTH and Marbodal. Manufacturing is conducted in Sweden, Norway, Denmark, Finland and Germany. The main markets are in the Nordic region, accounting for about 75 percent of sales, as well as Great Britain and Germany. Invoiced sales in 1995 amounted to SEK 3,988 million, resulting in a loss on operations. The number of employees in Stora Building Products is 3,890. Industri Kapital is one of the leading investment funds in Northern Europe, with total managed capital of about SEK 4 billion. Since 1989, Industri Kapital has carried out 16 investments, including Addum Industri, Crisplant, Ellos, KCIKonecranes, Lindex and Partena. The fund's investors are mainly well-known Swedish and Nordic institutions, such as Länsförsäkringar, Orkla, Robur, Ratos, Pensions Sampo, Uni Storebrand, Skandia, Merita Bank, Unibank and PKA.

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