Lindab, the Swedish-based provider of steel and sheet metal solutions to the construction sector, today announced that it has signed an agreement to acquire CCL Veloduct Ltd, a UK supplier of products and services for air-duct systems and air movement.

 

CCL Veloduct Ltd employs 265 staff and had net sales in the twelve-month period ending June 2006 of GBP 39 million.

 

Lindab's plan is to combine Lindab Ltd's Ventilation Business Unit with CCL Veloduct to create a strong UK supplier of products and related equipment for circular ductwork, air movement and indoor climate. The combination of the two companies is expected to result in significant synergy benefits.

 

 "Circular ducts have many proven advantages in the ventilation industry, notably in energy and installation efficiency. Joining two companies that have led the way in this product area, makes perfect business sense," says Hannu Paitula, Business Area Manager, Lindab Ventilation.

 

Lindab Group operates two business areas, Ventilation and Profile. The group generated sales of SEK 6,214 million in 2005, of which the Ventilation business area represented SEK 3,241 million. The most important markets for the Ventilation business area are the Nordic countries and Western Europe.

 

The deal will make the UK one of the most important markets for Lindab,  improving the offering to customers through a larger product base and a wider service network.

"This acquisition represents a further step in Lindab's strategy to accelerate growth in the circular duct business outside of the Nordic countries and strengthens our position in Western Europe" says Kjell Åkesson, CEO, Lindab Group.

 

The acquisition is subject to Lindab obtaining approval by relevant competition authorities and to limited confirmatory due diligence. The transaction is expected to be closed at the end of October.

 

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Contacts:

 

LINDAB AB

Kjell Åkesson, CEO

Email: kjell.akesson@lindab.com

Tel. +46 (0)431 850 00

 

Anders Persson

HR & Investor Relations Director

Email: anders.persson@lindab.com

Tel. +46 (0)431 851 29

 

Nils-Johan Andersson,

CFO

Mobile: +46 (0)7066 85075

 

 

Editors Notes:

 

Lindab is an international group that develops, manufactures and markets sheet metal products and system solutions for the construction sector.

 

The two main business areas are Ventilation and Profile.

 

The Ventilation business area focuses on the ventilation industry, offering components and systems solutions, with the main products falling under the area of circular duct systems and indoor climate systems.

 

The Profile business area focuses on the construction industry, offering an extensive range of construction components and complete building systems for both commercial and residential properties.

 

The Lindab group has approximately 4,500 employees in 28 countries and generated sales of SEK 6,214 million  in 2005. Its head office is located in Grevie near Bastad in southwestern Sweden.