Lindab comments market intelligence about on-going divestment of business unit
It has come to Lindab's attention that there is market intelligence about an active bidding process to divest business area Building Systems.
In 2017, Lindab initiated a strategic review of Building Systems. It resulted in an action program to increase profitability. Since then, Building Systems has greatly improved profitability. Lindab has noted a growing external interest in the business and has received unsolicited indicative bids that are being evaluated. Lindab has, however, not initiated a formal bidding process for Building Systems. No financial advisor has been appointed and there are no formal deadlines for submitting bids.
“We are open to the fact that Building Systems may change owner in the future, but as long as Lindab is the owner, our commitment to develop the business remains strong. Building Systems has over the past three years significantly improved profitability, they have an attractive product portfolio and a competent management team. In 2020, sales were affected by the uncertainty related to covid-19, but Building Systems has quickly adapted and has thus been able to show good profitability. That is probably why we have received unsolicited indicative bids”, says Ola Ringdahl, President and CEO of Lindab.
Building Systems is one of three business areas within Lindab. During the first nine months of 2020, the business area had sales of SEK 714 million and reported an operating margin of 4.6 percent.
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Lindab in brief
Lindab is a leading ventilation company in Europe. Lindab develops, manufactures, markets and distributes products and systems for energy-efficient ventilation and a healthy indoor climate. The products are characterized by high quality, ease of installation and environmental thinking.
The Group had sales of SEK 9,872 million in 2019 and is established in 31 countries with approximately 5,000 employees. The Nordic region accounted for 43 percent of sales in 2019, Western Europe for 35 percent, Central and Eastern Europe for 21 percent and Other markets 1 percent.
The share is listed on the Nasdaq Stockholm List, Mid Cap, under the ticker symbol LIAB.
This information is information that Lindab International AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2021-01-19 23:57 CET.