KMT divests Pullmax Machine

KMT has reached an agreement with Avalon Plus AB, owned by the listed Avalon AB and Lystor AB, regarding the divestment of Pullmax Machine AB, part of KMT:s product area Sheet Metal Working. The deal includes Pullmax Machine, based in Gothenburg and a sales company in the USA, Pullmax Inc.

The transaction will be effected as of 14 June 2006. The parties have agreed not to disclose the purchase price. Pullmax Machine manufactures advanced production equipment and system solutions for customers in the sheet metal forming industry. Including the US subsidiary, the operations employ some 45 persons and have an annual turnover of around SEK 75 million. The punching machine business within KMT has been showing losses for many years, but in 2005 the trend was reversed showing a break-even result. ”The sale of Pullmax Machine is a natural step considering that we previously sold a substantial part of Pullmax to Bystronic. The current deal means that we can focus even more on the Waterjet Cutting and Precision Grinding product areas. The deal will also enhance the operating margin of the KMT Group somewhat”, says Lars Bergström, CEO of KMT. The deal will result in a capital loss of SEK 13 million, which will be charged to the second quarter of 2006. Furthermore, Group sales will decrease by around SEK 75 million on an annual basis as a consequence of the divestment. The Group’s financial position will be only marginally effected as will the Group’s operating profit before divestments in 2006. The balance sheet total for the divested companies is around SEK 45 million. In order to make the transaction possible KMT has granted an overdraft facility of SEK 14.5 million during 3 years. For further information, please contact: Lars Bergström, CEO, Karolin Machine Tool AB Tel: +468-594 211 50 or via e-mail: lars.bergstrom@kmt.se