Exel sells its Floorball business to Cape Nordic Oy
EXEL OYJ STOCK EXCHANGE RELEASE 24.3.2009 at 9.40 1 (2)
EXEL SELLS ITS FLOORBALL BUSINESS TO CAPE NORDIC OY Exel sells the Exel Sports Brands' Floorball business to Cape Nordic Oy, a sports and fashion distributor based in Finland. The net sales of Cape Nordic Group were approximately EUR 20 million in 2008 in Finland, the Baltic countries and the Nordic countries. ”The transaction will strengthen our sports business significantly. We have a long-term interest in developing the floorball business under the strong Exel brand name”, says the Managing Director of Cape Nordic Oy, Kari Halonen. The transaction is estimated to come into force on 30 March 2009. A condition precedent for the transaction is that the consultations related to personnel in Sweden are concluded according to the Swedish law. The transaction completes the structural change program started in 2008 the objective of which is to concentrate solely on Exel Composites' composite profile business. “The business transfer secures the continued presence and distribution of Exel floorball products in a model that strengthens Exel's profitability. We can now focus all resources on developing Exel Composites”, says the President and CEO of Exel Oyj, Vesa Korpimies. Cape Nordic will take over the whole Floorball business, acquire the inventory and order backlog related to the Floorball business through an asset deal. In 2008, the net sales of the Floorball business were some EUR 5 million. The transaction also includes a long-term licensing agreement related to the use of the Exel brand together with other brands related to the floorball business. The employees of the Floorball business in Finland and Sweden will be transferred to Cape Nordic as existing employees. At present, there are 9 employees in Finland and 5 in Sweden. The parties have agreed not to disclose the transaction value of the business transfer. The transaction is not expected to have a material impact on the result of the Exel Group. Vantaa, 24 March 2009 EXEL OYJ Vesa Korpimies President and CEO FURTHER INFORMATION: Mr. Vesa Korpimies, President and CEO, Exel Oyj, tel. +358 50 590 6754, or email vesa.korpimies@exel.net DISTRIBUTION NASDAQ OMX Helsinki Ltd. Main news media www.exelcomposites.com Exel is a technology company which designs, manufactures and markets composite profiles and tubes for industrial applications. The Group is the leading composite profile manufacturer in the world and concentrates on growing niche segments. The core of the operations is based on own, internally developed composite technology, product range based on it and a strong market position in selected segments with a strong quality and brand image. Profitable growth is pursued by a relentless search for new applications and development in co-operation with customers. The personnel's expertise and high level of technology play a major role in Exel's operations. Exel's share is listed in the Small Cap segment of NASDAQ OMX Helsinki Ltd.