Initial Public Offering of Ballingslöv

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Ballingslöv International AB (publ) ("Ballingslöv") will be listed on Stockholmsbörsen (Stockholm Exchange) in conjunction with an issue of new shares and the sale of existing shares. Ballingslöv is one of the leading manufacturers of kitchen furniture in Scandinavia and Great Britain.

* Kitchen furniture manufacturer, with high profitability and strong, historical organic growth being listed on the stock exchange
* Price per share in the Offering is expected to be set within the price range SEK 56-66
* The Offering comprises approximately 5.4 million shares, corresponding to approximately SEK 327.1 M, at a price in the middle of the price range
* New issue of approximately 1.3 million shares, corresponding to approximately SEK 76.3 M, at a price in the middle of the price range
* Sale of approximately 4.1 million shares from EQT Scandinavia I. EQT Scandinavia I could sell additional shares

The application period for institutional investors is June 4-18 (retail investors June 4-17) and the price per share is expected to be announced on or about June 19

Ballingslöv in brief
Ballingslöv is one of the leading manufacturers of kitchen furniture in Scandinavia and Great Britain. Bathroom and storage furniture is also sold in Scandinavia. Its products are sold under a number of strong brand names that are well known in their respective markets, including Ballingslöv, JKE Design, DFI and Paula Rosa. Manufacturing is carried out in four plants in Sweden, Denmark and Great Britain. Ballingslöv has approximately 820 employees. Ballingslöv AB was founded in 1929. EQT Scandinavia I acquired the Ballingslöv Group in 1998.

During the past five years, Ballingslöv has reported a continuous increase in sales, which have more than doubled from SEK 556.2 M in 1996 to SEK 1,233.9 M in 2001, corresponding to an average annual growth rate of approximately 17 percent. This growth includes the acquisition of JKE Design during 2000, whose sales in that year amounted to SEK 154.9 M. During the same period, operating income before goodwill amortization increased from SEK 47.5 M in 1996 to SEK 135.2 M in 2001, representing a margin improvement from 8.5 percent to 11.0 percent. The favorable development during the period is attributable to strong market development in Great Britain, Sweden and Norway, successful product launches, improved quality of the retail network, efficiency enhancement in manufacturing and high capacity utilization.

Ballingslöv holds strong market positions in Scandinavia and Great Britain. In Sweden, Ballingslöv has an estimated market share for kitchen furniture of approximately 18 percent, while the estimated market share is 10 percent in Denmark and 8 percent in Norway. In the British market, Ballingslöv holds an estimated market share in the private new-construction segment of approximately 18 percent.

Ballingslöv’s objective is to grow organically at a faster rate than the market. Average organic growth has amounted to approximately 8 percent during the past four years. Add-on acquisitions are high on the Company’s agenda and a number of acquisition candidates have been identified. Acquisitions shall be made with a geographical focus on the Nordic Region and Great Britain, when the occasion arises, and shall supplement existing operations in terms of range of products or distribution channels. Since 1989, Ballingslöv has carried out a number of successful acquisitions, which were smoothly integrated and contributed to the Company’s high profitability.

"Ballingslöv currently has a strong market position, well-known brands, well-established distribution channels and a broad product range," says Nils-Erik Danielsson, President and CEO of Ballingslöv. "The public listing of Ballingslöv shares on Stockholmsbörsen will have a number of positive effects for the Company. The IPO will strengthen our financial position, thus improving the potential for continued organic expansion and providing us increased opportunities to grow through acquisitions. Acquisitions will be made with a geographical focus on the Nordic region and Great Britain, that is, markets with good balance between supply and demand."

"Since 1998, when we acquired Ballingslöv, sales as well as profitability have risen sharply. Today, Ballingslöv has achieved such a market position, size and profitability that the time is now suitable for a broadening of ownership," says Claes Dahlbäck, Chairman of the Board of EQT Scandinavia I. "A public listing will improve Ballingslöv’s potential to develop and actively participate in the consolidation of the kitchen and bathroom furniture markets in Northern Europe."

Facts about the Offering
The Board of Directors of Ballingslöv and the Company’s owners have decided to broaden ownership of the shares through a combined issue of new shares and sale of existing shares in conjunction with a listing of the Company’s shares on Stockholmsbörsen. On May 14, 2002, the Company Committee of Stockholmsbörsen approved Ballingslöv for listing on the O-list, subject to the satisfaction of Stockholmsbörsen’s initial distribution criteria.

The Offering comprises a total of 5,362,879 shares 1) , corresponding to 50.0 percent of the share capital and votes in Ballingslöv. The Offering comprises a new issue of 1,250,000 shares and the sale of 4,112,879 existing shares from EQT Scandinavia I. The new issue is being made with the aim of strengthening Ballingslöv’s financial position pending the public listing and make the Company better equipped financially for the Company’s continued organic expansion. Before deductions for listing and issue costs and costs incurred for repurchasing of warrants, the new issue will generate proceeds to Ballingslöv of SEK 76.3 M, at a price in the middle of the interval.

If the demand should be larger than expected, EQT Scandinavia I has the possibility to sell an additional 1,608,864 shares1. Combined, senior executives and Board members in Ballingslöv, who do not divest shares in conjunction with the Offering, will own shares corresponding to approximately 6.8 percent of the share capital and votes in Ballingslöv after implementation of the Offering 2) .

The shares will be offered to institutional investors in Sweden and abroad and to the general public in Sweden as well as Ballingslöv employees in Sweden and Denmark. After implementation of the Offering, the number of shares in Ballingslöv will amount to a maximum of 10,725,759.

The offering price will be set through a book-building bidding procedure involving institutional investors only and is expected to be set in the price range of SEK 56-66 per share. The final price to the general public will not exceed SEK 66 per share.

Alfred Berg is lead manager for the Offering, with Nordea Securities as co-lead manager. A prospectus and an application form can be obtained from Nordea Securities, any of Nordea’s branch offices in Sweden and from Alfred Berg, or be requested by telephone, +46 8-407 96 50.

Preliminary timetable
The prospectus is being released today. The application period for the general public in Sweden will be from and including June 4, 2002 to and including June 17, 2002. The bidding period for institutional investors is from June 4, 2002 through June 18, 2002. The finally determined offering price is expected to be announced on or about June 19, 2002. Full payment of allotted shares must be made in cash not later than June 26, 2002. Listing of the shares on the O-list of Stockholmsbörsen is expected to occur from June 19, 2002.

EQT
EQT is a northern European private equity group that was established in 1994 and consists of five private equity funds, of which one is EQT Scandinavia I, with total equity commitments exceeding EUR 3 billion. EQT’s business concept is realised by acquiring and developing high-quality medium sized companies in Northern Europe. EQT serves as an active owner and works in close co-operation with the management of the companies it acquires, to develop and implement value-enhancing strategies. For each investment, EQT’s investment horizon is three to eight years. EQT Partners AB is the investment advisor for all of EQT’s funds.


1) Or the higher number of shares that may be sold as a result of any over-allotment.

2) In conjunction with the Offering, senior executives and Board members in Ballingslöv will convert all their convertibles to shares and exercise a portion of their warrants through subscription of new shares in the Company. The warrants that are not exercised will be repurchased by the Company. In conjunction with the repurchase of warrants, the holders will receive, at the lowest price in the interval, liquid funds to subscribe for shares in Ballingslöv for the warrants not repurchased and to cover the capital gains tax that is expected to arise in connection with the repurchase and to cover repayment of any loans received in conjunction with the initial purchase of the convertibles.

For additional information:
Ballingslöv International AB (publ)
Nils-Erik Danielsson, President and CEO
Mobile: +46 708-94 61 01
Tel: +46 451-461 01

EQT Partners AB
Fredrik Åtting, Partner
Tel: +852 2971 5886
Mobile: +852 9020 0368

Caroline Rosén, Partner, Investor Relations and Communications
Tel: +46 8-440 53 37
Mobile: +46 70-589 00 37

Ballingslöv International AB is one of the leading manufacturers of kitchen furniture in Scandinavia and Great Britain. Its products are sold under a number of strong brand names that are well known in their respective markets, including Ballingslöv, JKE Design, DFI and Paula Rosa. Manufacturing is carried out in four plants in Sweden, Denmark and Great Britain. Ballingslöv has approximately 820 employees. Ballingslöv AB was founded in 1929. EQT Scandinavia I acquired the Ballingslöv Group in 1998. Consolidated net sales in 2001 amounted to SEK 1,233.9 M and operating income before goodwill amortization in 2001 amounted to SEK 135.2 M.