Atle sells Lysekils

* Atle Mergers & Acquisitions has signed a declaration to sell Lysekils Havsdelikatesser to the Icelandic company, Bakkavör, for SEK 72M * Exit profit SEK 20M * The acquisition is the largest Icelandic acquisition ever in Sweden and one of the largest Icelandic corporate transaction of all time Lysekils Havsdelikatesser was acquired from KF in 1994 by Atle Livsmedelsprodukter and has since been a wholly-owned subsidiary of the investment company Atle. The acquisition was made with the objective of creating over a period of time a clear market number two in the seafood delicatessen segment. In accordance with the strategy a strong reprofiling took place in 1997 during which, among other things, the name was changed from Skandiakonserv to Lysekils Havsdelikatesser and the company started launching own brandnames. As the company in Atle's ownership became private and independent from KF, it was possible to create strong organic growth in which the circle of customers developed to include Dagab and ICA. In addition, a number of small companies were acquired over the years. During its time in Atle's ownership Lysekils Havsdelikatesser increased its sales from SEK 129M to SEK 215M with earnings of SEK 10M in 1998. Atle now considers that it has fulfilled its owner role in Lysekils Havsdelikatesser and has therefore entered into a declaration to sell the company to Bakkavör. The deal will generate an exit profit on Atle's part of SEK 20M. Bakkavör is considered to be able to contribute to the continued development of Lysekils Havsdelikatesser and the transaction is in line with the investment company Atle's business concept to exit the Group's holding after its task has been completed. Ralf Olofsson, President of Lysekils Havsdelikatesser: "Bakkavör is a strong Icelandic operator which provides Lysekils with excellent opportunities for completing its Nordic strategy. In addition, the company ATLE AB (Publ) P.O. BOX 7308 S-103 90 STOCKHOLM SWEDEN VISITORS: REGERINGSGATAN 48 TELEPHONE +46-8-506 101 00 TELEFAX +46-8-506 101 10 REGISTERED OFFICE: 556454-8799 strengthens Lysekils' access to high-quality raw materials which is an increasingly important competitive factor. The new owner also provides Lysekils with interesting export opportunities in Continental Europe." Gustav Bard, President of Atle Mergers & Acquisitions: "We have now brought Lysekils a considerable way along its strategy to become a strong number two on the market for seafood delicatessen in Sweden and in its expansion in the Nordic countries. This means that Atle's original objectives with Lysekils have now been achieved. Bakkavör is an industrial owner which is able to contribute to the company the additional expertise and financing that is required for continued expansion. We are therefore convinced that Bakkavör will be able to contribute to the continued development of Lysekils Havsdelikatesser." Stockholm, 25 May 1999 Atle AB (publ) For further information, please contact: Gustav Bard, President of Atle Mergers & Acquisitions, tel +46 8-506 101 00 Ralf Olofsson, President of Lysekils Havsdelikatesser, tel +46 0523-184 25 August Gudmundsson, Bakkavör, tel +354 421 14 00 Bakkavör HF Bakkavör is a leading Icelandic producer and marketer of various types of seafood products with sales throughout Europe and in the USA. In recent years, the company has very successfully established itself with own brandnames in, among other countries, France and Great Britain. Bakkavör reported sales of SEK 85M in 1998. The company is owned by Grandi (33%), a leading Icelandic fish producer, the management (33%), the Norwegian company Mills (9%), and Kaupting (25%), a leading Icelandic bank. Through the acquisition of Lysekils Havsdelikatesser, Bakkavör obtains a platform for growth on the Nordic Market and access to production capacity inside the tariff barrier of the EU with regard to fish and seafood delicatessen. Atle Mergers & Acquisitions Atle Mergers & Acquisitions invests mainly in mature companies with well- identified opportunities for building value-added through development and restructuring work. The focus in the Business Sector is on structural issues, strategy development and financial expertise. The companies in which Atle M&A invests should have an able and experienced management, a strong competitive position and a positive cash flow. At the time of acquisition it should already be in a position to identify realistic opportunities for divesting the holding in the future. Atle M&A could be a majority or minority owner but the ownership should normally be in excess of 20 per cent. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/05/25/19990525BIT00230/bit0001.doc http://www.bit.se/bitonline/1999/05/25/19990525BIT00230/bit0002.pdf