Atle forming a pan-Nordic DIY distributor

Atle forming a pan-Nordic DIY distributor * Atle-owned HDF-BOLAGEN is merging with Norway's Markt & Co * The merger will create a prominent pan-Nordic DIY wholesaler with good prospects for resolute expansion on new markets, and for a potential stock market flotation * This year, the new group's estimated sales exceed SEK 1 bn * Atle's ownership: 69 per cent Building supplies wholesaler HDF-BOLAGEN and Norway's Markt & Co are merging to become the pan-Nordic DIY products leader, as well as gaining a prominent position in the industrial products sphere. The merger creates the right conditions for a potential stock market flotation. The new group, where Atle's ownership stands at 69%, has estimated annual sales of SEK 1 bn-plus. Thomas Holmgren (HDF-BOLAGEN's Chief Executive) has been appointed as the new group's Chief Executive, with Stein Cato Thilert (Chief Executive of Markt & Co) appointed Deputy Chief Executive. HDF-BOLAGEN, based in Halmstad, Sweden, is a building supplies distributor with a broad-based product range extending through building, hardware, plumbing and heating suppliers, plus goods for superstores. The company is the Swedish market leader, generating earnings of SEK 34 m from sales of SEK 633 m in 1999, with 185 employees. Markt & Co is a well-established Norwegian hardware distributor, primarily with a professional focus through resellers. The company is active with Norway, Sweden, Denmark, Poland and Lithuania. The company achieved earnings of SEK 9 m from sales of SEK 270 m in 1999. Markt & Co has 120 employees. Stig Karlsson, Chief Executive of Atle Tjänste & Handel said "with this new company, whose name has yet to be decided, we're building solid foundations for sustained growth in the professional sector, and for expansion outside the Nordic region, particularly to Poland and the Baltic states. This merger also creates opportunities for joint concept development, within sectors including B2B trading, which looking ahead, will secure high strategic significance." ATLE AB (Publ) P.O. BOX 7308 S-103 90 STOCKHOLM SWEDEN VISITING ADDRESS: REGERINGSGATAN 48 TELEPHONE +46 (0)8 506 10100 TELEFAX +46 (0)8 506 10110 CORPORATE IDENTITY NO.: 556454-8799 Thomas Holmgren, Chief Executive of HDF-BOLAGEN, commented that "the two companies are mutually complementary with their differing focuses, while any dependence on individual principals is eased. Our intention is to continue expanding through acquisitions, but with acquired companies allowed to retain their special individual profiles." For Markt & Co, Chief Executive Stein Cato Thilert responded "forming part of the new group alongside HDF will give us the opportunity to continue our growth. There are significant market synergies, while we perceive possibilities to co-ordinate functions in the group such as purchasing and IT, creating sizeable cost advantages." Stockholm, 26 April 2000 Atle AB (publ) For more information, please contact: Stig Karlsson, Chief Executive of Atle Tjänste & Handel, tel +46 (0)70 641 1345. Thomas Holmgren, Chief Executive of HDF-BOLAGEN, tel +46 (0)35 154 400. Stein Cato Thilert, Chief Executive of Markt & Co, tel +47 67 92 10 24 Atle- key facts Atle is a growth company that intends to be 2-3 times its current size in 5 years' time. Atle is a private equity player, investing in unlisted companies, participating actively in their development, and after a few years, finding them a suitable new home- through an exit- thereby realising value growth. Since 1993, the Atle group's earnings have risen progressively, from SEK 373 m to SEK 1,025 m in 1999. Atle maintains a high transaction tempo, acquiring over 20 enterprises across all sectors each year. Since inception in 1992, Atle has invested in approximately 200 businesses and exited from over 100. Its annual return from these exits has exceeded 50%. 43 of its holdings (26% of invested capital) are in IT and other technology enterprises. Atle is quoted on the Stockholm Stock Exchange's A-list and has approximately 16,500 shareholders. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/04/26/20000426BIT00780/bit0001.doc http://www.bit.se/bitonline/2000/04/26/20000426BIT00780/bit0002.pdf