3i acquires Pharmadule Emtunga from IDI

3i acquires Pharmadule Emtunga from IDI Stockholm 16 December, 2003 · 3i Group plc with funds has formed PHEM Intressenter, which has signed an agreement to acquire Pharmadule Emtunga from IDI and other present owners. · Pharmadule Emtunga is a world-leading supplier of production facilities to the pharmaceutical industry, living quarters to the offshore industry and modules to the telecom sector. · Pharmadule Emtunga is a growth company that has more than quadrupled its sales in three years. The company is expected to reach sales of SEK 2.2 billion in 2003, with a continued positive development in profitability. Together with management and Board representatives, 3i has formed PHEM Intressenter, which has signed an agreement to acquire Pharmadule Emtunga AB from IDI and the other present owners. Pharmadule Emtunga is a world-leading producer of high-tech facilities, primarily for the pharmaceutical, biotechnology and offshore industries. Pharmadule Emtunga uses a unique modular concept that results in substantially shorter delivery times compared with conventional construction methods at a highly competitive quality and price. The resulting shortened time to market and predictability in project performance have considerable value for customers, who are able to postpone major investment decisions and launch products earlier and with more precise timing. Emtunga's history can be traced back to 1945, while Pharmadule started operations in 1986. Pharmadule Emtunga's concept and product offering have achieved global success in the pharmaceutical and offshore industries during the past few years. IDI acquired Emtunga International in 1998 and Pharmadule in 2000. Pharmadule Emtunga was formed through a merger of Pharmadule and Emtunga in 2001, which resulted in a full-range company focusing on the pharmaceutical, offshore and telecom industries. "Pharmadule Emtunga is an extremely interesting company with a unique position in an attractive and growing market," says Gustav Bard, Managing Director of 3i Sweden and adviser to 3i Group plc. "The company has a unique product offering and a highly competent management team and organisation, and we consider that it has excellent prospects for continued profitable growth." "During IDI's ownership Pharmadule Emtunga has shown exceptional growth and at the same time improved profitability," says Christer Zetterberg, Chairman of IDI. "Pharmadule Emtunga's strong management team and an experienced and committed Board of Directors have contributed to making Pharmadule Emtunga a very successful investment for IDI. We are pleased that Pharmadule Emtunga is getting an owner that will provide the resources required to take the business to its next stage of development." Pharmadule Emtunga has grown strongly during the past few years, partly as a supplier to the pharmaceutical sector, where its largest customers are Eli Lilly, Merck, Baxter and Aventis, partly in the offshore area where the company is a supplier to BP, AGIP and Statoil. In the telecom sector it acts as a supplier to Ericsson. The company is currently concluding a project valued at SEK 1 billion for Eli Lilly in Puerto Rico. On August 22, Pharmadule Emtunga was presented with the Export Hermes prize 2003 by Sweden's Crown Princess Victoria. The prize is awarded annually to a Swedish company that has achieved extremely positive export development. The winner is selected by the Foundation for Export Development and the Swedish Trade Council. Pharmadule Emtunga currently has 600 employees and conducts operations in Vara, Gothenburg and Stockholm. "We take a highly positive view of 3i becoming the new owner of Pharmadule Emtunga," says Tomas Wängberg, President of Pharmadule Emtunga. "This transaction will give us an excellent foundation for further development of the company. In 3i we have a partner with a broad international contact network and extensive experience of corporate development." "As a result of its unique customer offering, Pharmadule Emtunga has succeeded in developing strong customer relations with world-leading companies in the pharmaceuticals, biotechnology and oil industries," says Fredrik Karlsson, Investment Director 3i Sweden and adviser to 3i Group plc. "We are convinced that the company has the potential to continue growing and further develop its offering to customers." The transaction is conditional upon approval from the relevant competition authorities. As part of the purchase price, the present owners in Pharmadule Emtunga will retain a smaller interest in the company. Enskilda Securities AB is acting as the financial adviser to 3i Group plc with funds and D. Carnegie AB is acting as the financial adviser to IDI in connection with the transaction. For further information, please contact: Gustav Bard, Managing Director, 3i Nordic plc (UK), Swedish branch, adviser to 3i Group plc, tel. +46 8 506 101 51, +46 70 511 64 27. Christer Zetterberg, Chairman of the Board of IDI, tel. +46 8 407 35 00, +46 708 24 25 26. Tomas Wängberg, President, Pharmadule Emtunga, tel. +46 31 726 03 33, +46 705 94 24 44. About 3i Group plc 3i brings capital, knowledge and connections to the creation and development of businesses around the world. It invests in a wide range of opportunities from start-ups to buy-outs and buy-ins, focusing on businesses with high growth potential and strong management. 3i invests in businesses across three continents through local investment teams in Europe, Asia Pacific and the USA. To date, 3i has invested over £15 billion (including co-investment funds). In the 6 months to 30th September 2003 an average of £2.2 million (including co-investment funds) was invested each working day. 3i's current portfolio is valued at over £5 billion (£5,265 million including co-investment funds). About IDI Industrial Development & Investment AB ("IDI"), established in 1997, is an independent private equity fund, focusing on the small and mid-cap segments in Northern Europe. The fund has committed capital in excess of SEK 1 billion. IDI's management team consists of a dedicated group of individuals with extensive international experience both as financial and strategic advisors. About Pharmadule Emtunga Pharmadule Emtunga is a world-leading supplier of high tech modular facilities based on its own developed modular concept. The Group covers the entire value chain, from design and manufacturing to documentation, training and after sales service. Pharmadule Emtunga supplies modular facilities to blue-chip companies within the pharmaceutical and biotechnology sectors and the oil & gas, telecom and utility industries. The company's operations are organised in three divisions: Pharmadule supplies turnkey modular production facilities to the pharmaceutical and biotechnology industry; Emtunga supplies living quarters and technical modules to the oil & gas industry for offshore platforms, among other applications; and Flexenclosure supplies telecom shelters and technical modules to the telecom and utility industry. Pharmadule Emtunga had sales of SEK 1.8 billion in 2002. Pharmadule Emtunga's present principal owners are IDI, Clas Wallenborg, Bliwa Livförsäkring (life insurance) and the Swedish Red Cross. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2003/12/16/20031216BIT00020/wkr0001.doc http://www.waymaker.net/bitonline/2003/12/16/20031216BIT00020/wkr0002.pdf