Atle forms a billion-kronor group aiming for an IPO within two years

Atle forms a billion-kronor group aiming for an IPO within two years * Atle-owned Hägglunds Drives AB and GSH International Oyj of Finland, with its 25% average annual growth, are to form a new group. * The new group's pro forma 1999 sales were SEK 1.2 bn with earnings before net financial items and goodwill of approximately SEK 90 m. * Atle will be the new group's biggest shareholder, with 72% of the capital and votes. * The group will be a platform for continued acquisitions- a stock market flotation is expected within a two-year period. * The deal is dependent on approval from the relevant competition authorities. Atle-owned hydraulics producer Hägglunds Drives AB and GSH International Oyj of Finland are to form a substantial international enterprise providing sophisticated customised hydraulics systems. This transaction marks the first step of an expected sequence of complementary acquisitions in this sector. The objective is for the new group's owners to seek an IPO of the company within a two-year period. The new group's pro forma 1999 sales were SEK 1.2 bn, with earnings before net financial items and goodwill of approximately SEK 90 m, equivalent to a pre-tax margin of 7.5%. With 72% of the votes and capital, Atle will be the biggest owner of the new group. GSH International Oyj's former owners will own the remainder of the new company. Hägglunds Drives, currently 100% owned by Atle, is one of the world's pre- eminent providers of sophisticated hydraulic drive systems for applications in the manufacturing, offshore and marine sectors. The company has its headquarters and manufacturing in Mellansel, Sweden, with subsidiaries in 14 countries. In 1999, Hägglunds Drives generated earnings of SEK 46 m from sales of SEK 735 m. ATLE AB (Publ) BOX 7308 103 90 STOCKHOLM SWEDEN VISITOR'S ADDRESS: REGERINGSGATAN 48 TELEPHONE +46 (0)8 506 10100 TELEFAX +46 (0)8 506 10110 CORPORATE IDENTITY NO. 556454-8799 Prior the merger, GSH International Oyj was owned by its management and a number of financial investors. The company is a world leader in non-welded pipen systems based on a connector principle developed in-house. GSH's products are targeted at largely the same market segments as Hägglunds Drives' systems, and to some extent, already form part of Hägglunds' product offerings. GSH is headquartered in Helsinki, Finland, and has subsidiaries in 12 countries. Originally, GSH was an MBO from Kone; since 1994, its average annual growth has exceeded 25% with healthy profitability. In 1999, sales were SEK 438 m, with earnings of SEK 42 m. Anders Lindblad, Hägglunds Drives´ current Chief Executive, has been appointed Chief Executive and President of the new group. Additionally, the group management will comprise executives from both GSH and Hägglunds Drives. The new management team will become active as soon as the requisite permission has been granted by the competition authorities. Bo Ulván, Atle Industri's Chief Executive: "As early as Atle's January 1998 acquisition of Hägglunds Drives, we revealed our plans to create a group with the requisite strength to achieve sustained worldwide expansion. This merger with GSH International means we create a billion- kronor group with major co-ordination effects, a platform for impending acquisitions and a company that will be ripe for its IPO within two years." Stockholm, Sweden, 10 March 2000 Atle AB (publ) For more information, please contact: Bo Ulván, Chief Executive of Atle Industri, tel.: +46 (0)8 678 16 10 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 14,000 shareholders. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/03/10/20000310BIT00480/bit0001.doc http://www.bit.se/bitonline/2000/03/10/20000310BIT00480/bit0002.pdf