New Wave Group AB (publ) has entered upon a letter of intent to acquire Segerkoncernen AB
New Wave Group AB (publ) has entered upon a letter of intent to acquire Segerkoncernen AB New Wave Group has entered upon a letter of intent with the owners of Segerkoncernen AB, Ulf and Per Segerqvist, to acquire all the shares in Segerkoncernen AB, with the subsidiaries Seger Europe AB and Seger United AB, and the trademark rights that the owners have at their disposal. Completion of negotiations is planned for September 2001, at which time a review of the company will also be implemented. Segerkoncernen is expected to have a turnover of approximately 150 million SEK during the next year with good profitability. The subsidiary Seger Europe is one of the leading manufacturers of knitted sports articles such as socks, caps and scarves in Scandinavia and has a relatively large manufacturing with companies as final customers. The subsidiary Seger United is one of the largest sports whole sellers in Sweden, partly by own trade marks like Seger, partly by license- and distribution rights for trade marks such as Umbro, Exel, Rollerblade and Christian. New Wave Group believes that an acquisition of Segerkoncernen will strengthen New Wave Group's both business areas (Profile and Retail) powerfully. After an acquisition, New Wave Group intends to integrate Segerkoncernen as follows. Business area Profile Seger Europe manufactures several products, such as socks, caps and scarves, which New Wave Group currently lacks within the business area Profile. After an acquisition, New Wave Group believes that it will be able to increase sales of these products by a powerful launch in all the countries where New Wave Group is active. Seger Europe's present sales are mainly being executed in Sweden. Business area Retail Seger United is intended to become a part of New Wave Group's business area Retail, where, after an acquisition, New Wave Group will be one of the largest suppliers in Sweden with an annual turnover of approximately 500 million SEK and with trademark products such as Umbro, Craft, Seger, Clique, Nordica, Exel, Rollerblade and Christian. Moreover, an acquisition would mean that New Wave Group, with its supply within its business area Profile included, will be one of the most complete and qualified Suppliers to sports clubs and -organizations. The intention is here to launch an e-commerce system to athletic clubs and - organizations, where the sales will be executed by distributors as an imitator of New Wave Group's e-commerce system 4yourlogo.com, which is managed by New Wave Group's subsidiary Cyberwave AB and which has been very successful on the business market. This broadening has been planned within Cyberwave since the start. The launch will be made under the Internet domain name 4yourclub.com. Synergies New Wave Group believes that an acquisition will result in extensive positive synergetic effects mainly within sales, logistics and purchases. After an acquisition, the synergetic effects will be presented more closely during the first quarter of 2002. Economic consequences An acquisition is expected to contribute positively to New Wave Group's income as early as this year. Other information The sales in July 2001 within the New Wave group of companies developed positively and the increase of the turnover was 28 per cent. Borås, 21 August 2001 New Wave Group AB (publ) Torsten Jansson For further information, please contact: Torsten Jansson CEO Phone: +46 708-99 80 50, +46 33-22 58 55 ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2001/08/21/20010821BIT00320/bit0001.doc http://www.waymaker.net/bitonline/2001/08/21/20010821BIT00320/bit0001.pdf