Bure divests its holding in Textilia

Bure has signed an agreement regarding divestment of its total holding in Textilia to a company owned by Litorina.

Bure divests its holding of shares in Textilia to a company owned by Litorina, with closing on August 22. The purchaser will pay a fixed purchase price of 201 MSEK for 100 per cent of the shares in Textilia, of which 182 MSEK will be paid at the time of the closing and 19 MSEK by a vendor note with a maximum lifetime of six years. In addition to the fixed purchase price, there is an additional purchase price dependent on the 2008 result, which is capped at 30 MSEK. Furthermore, there are three additional purchase prices of binary characteristics which could be paid within three years. The parent company will report preliminary capital gains (1) of 170 MSEK.

Since the divestment of Simonsen Material in 2005, Bure and the management have worked closely together in order to refine and rationalise the business, resulting in an improved profitability. “Today, Textilia is a market leader within textile services to the public sector and a company with satisfying margins. The company has developed strongly under the current management and we believe the time is right for a new owner to take over and develop the company further”, says Carl Backman, Executive Vice President, Bure.

Göteborg August 22, 2008
Bure Equity AB (publ)