Volvo Aero increases ownership stake in Ages Group

VOLVO AERO INCREASES OWNERSHIP STAKE IN AGES GROUP Volvo Aero has increased its ownership interest in the American AGES Group from 57.2 percent to 86.4 percent. The purchase price was USD 52.5 M. AGES is based in Boca Raton, Florida. Operations include the sale of primarily second-hand aero materials (engines, airframes and other equipment). The focus is on spare parts for aircraft engines. AGES was founded in 1979 and has grown organically to become one of the leading companies in the aircraft equipment sector. In 1998 the company posted sales of USD 358 M and operating profit of USD 31.8 M. Volvo Aero has been a joint owner in AGES since October 1992. On four separate occasions in the past, Volvo Aero had gradually acquired a total of 57.2 percent of AGES for USD 92.2 M. Volvo Aero has now acquired an additional 20 percent of the shares in the company from AGES Holding and a 9.2-percent holding from GPA (Guinness Peat Aviation) in Ireland to bring its ownership interest up to a total of 86.4 percent. Through this latest transaction, Volvo Aero becomes a "General Partner" and thereby assumes operative responsibility for AGES. Under the terms of the agreement, the former principal owner, AGES Holding, will retain an ownership interest of 8.7 percent for a period of at least three years. The Bank of Tokyo Mitsubishi (BTM) will also retain a 4.9 percent holding in future. "Volvo Aero is poised to expand into the after-market and service areas, among others. Jointly with the operations in civil aircraft maintenance, AGES provides the base for such an expansion," says Volvo Aero's President, Fred Bolin, in a comment on the increased holding. March 2, 1999 ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/03/02/19990302BIT00350/bit0001.doc http://www.bit.se/bitonline/1999/03/02/19990302BIT00350/bit0002.pdf