Munters becomes world leader in cooling systems for the poultry industry

Munters becomes world leader in cooling systems for the poultry industry Acquires Italian company Euroemme Munters, the world leader in moisture control with products and services for dehumidification, humidification and cooling of air, has concluded an agreement to purchase the Italian company Euroemme. Euroemme is a leading manufacturer of solutions for climate control of poultry and greenhouses. "Munters is today the world leader in components for evaporative cooling of poultry and greenhouses. Euroemme is the main competitor of Munters, outside the US, in this industry. Furthermore Euroemme is a leading company in ventilation systems for poultry and greenhouses. Together Munters/Euroemme will be the leader in cooling systems for the markets in Europe, Asia and the Middle East," says Mr Lennart Evrell, President and CEO of Munters. Euroemme is a family owned company in Imperia, not far from Genoa, Italy. The company was founded in the 1950s with a base in manufacturing of air heaters for greenhouses. The product portfolio has gradually been extended and today ventilation and air cooling products are the most important. The company has 70 employees and annual sales of about SEK 160 million. Sales have a geographical mix with Europe 50%, Middle East 25%, Asia 20% and the US 5%. The company is recognised by its strong brand and high quality products. "By acquiring Euroemme we are moving from component manufacturing to units and systems and can develop evaporative cooling to its full potential," says Mr Mats R Karlsson, Division President HumiCool Europe. "The combination of Euroemme and Munters also strengthens our capacity to meet increasing demand for components for evaporative cooling and provides opportunities for synergy in manufacturing, distribution and sales." The acquisition will be consolidated in Munters from January 2000 and will create goodwill of approximately SEK 160 million, which will be depreciated over 20 years. The impact on Munters' earnings per share will be positive in the year 2000. On request of the sellers the price of Euroemme will not be made public. Present management will remain. Using Munters' technique for evaporative cooling, chicken farmers can increase productivity by creating the right indoor climate. CELdek is the cooling pad in Munters systems for evaporative cooling. When hot and dry air passes the wet pads it becomes both cooler and more humid. In hot and dry climates cooling from +45°C to +26°C is possible by using Munters CELdek cooling pad, water and air. "Evaporative cooling is a cost-efficient and environmentally adapted alternative to traditional air conditioning," says Mr Karlsson. "Alternative techniques are often based on CFC utilisation which breaks down the ozone layer in the atmosphere," he concludes. For more information please contact: CEO Lennart EvrellTel: +46 8-626 63 03 CFO Bernt Ingman Tel: +46 8-626 63 06 VP Corporate Communications Per Bowallius Tel:+46 8-626 63 08, +46 70-324 03 14, e-mail: per.bowallius@munters.se ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/12/22/19991222BIT00800/bit0001.doc http://www.bit.se/bitonline/1999/12/22/19991222BIT00800/bit0002.pdf