Fiskars Corporation Stock Exchange Release August 31, 2007 at 1.30 p.m.
IITTALA GROUP BECOMES IMPORTANT PART OF FISKARS
Creation of strong European house of branded goods and design confirmed
The deal signed in June 2007 whereby Fiskars Corporation acquires Iittala Group
has been closed as planned. The approvals from the competition authorities
required for the transaction were received in the beginning of August.
The purchase price is EUR 230 million and it will be funded by using the
Corporation's existing credit facilities. Fiskars Corporation acquires Iittala
Group Plc from the private equity company ABN AMRO Capital, the company's
management and other private shareholders. The top management of Iittala will
retain a holding of about 2 percent in Iittala.
Iittala Group will be consolidated as of September 1st and the company's net
sales and operating profit, most of which is generated during the last months of
the year, will improve Fiskars' figures.
Iittala Group will form a new European business within Fiskars Corporation
alongside Fiskars Brands. Certain parts of the Housewares division of Fiskars
Brands will be consolidated into Iittala Group where the market areas are
shared. Tero Vähäkylä will continue as Iittala Group's CEO. Synergy effects will
follow in the next two to three years and are thereafter expected to reach EUR 5
The net sales of Iittala Group in 2006 were approximately EUR 190 million, and
some EUR 490 million for Fiskars consumer products operations, Fiskars Brands.
The Housewares division represented 9% of the net sales for Fiskars Brands. The
operating profit of the Iittala Group in 2006 amounted to approximately EUR 17
million and the profitability of the Housewares division of Fiskars Brands was
President and CEO
Founded in 1649, Fiskars (www.fiskars.fi) is an international corporation which
includes the subsidiaries Fiskars Brands, Inha Works, and the Real Estate Group.
Fiskars holdings in associated company Wärtsilä is also an important part of
Fiskars Corporation. In 2006, the net sales of Fiskars Corporation was EUR 535
million, its operating profit EUR 86 million. The Corporation employed some
3,000 people around the world. Globally, the Corporation's best known products
are its orange-handled scissors and its garden tools.