Ratos: Hägglunds Drives to acquire Rineer Hydraulics
Ratos's wholly owned subsidiary Hägglunds Drives has concluded an agreement to acquire the operations of the American company Rineer Hydraulics Inc. The purchase price amounts to approximately USD 23 million. As a result of this acquisition, Hägglunds Drives will strengthen its product range and position in the North American market. Hägglunds Drives will acquire the operations of Rineer Hydraulics through a net asset purchase. Rineer Hydraulics manufactures and sells hydraulic motors for applications in oil drilling, transport, agriculture, building and construction. The company shows strong growth with good profitability. Sales in 2007 totalled approximately USD 12m and the company reported an operating profit (EBITA) of approximately USD 3m. The head office is in Texas, USA, and the company has 80 employees. - Hägglunds Drives CEO Per Nordgren comments on the acquisition:"The acquisition of Rineer Hydraulics complements and strengthens our product range as well as consolidating our position in the American market. In future we will also be able to offer Rineer's products to a global market through our strong global sales organisation." Hägglunds Drives is a leading international supplier of complete hydraulic drive motors and drive systems. The largest customer segments include the mining, materials handing, marine and offshore industries. The company has subsidiaries in 16 countries. In 2007, Hägglunds Drives achieved sales of SEK 1,761m and reported an operating profit (EBITA) of SEK 360m. Ratos's stake in Hägglunds Drives amounts to 100%. Ratos will not provide any capital in conjunction with the acquisition. For further information, please contact: Stig Karlsson, Industrial Advisor Ratos, +46 8 700 17 00 Per Nordgren, CEO Hägglunds Drives, +46 660 87 001 Clara Bolinder-Lundberg, Head of Corporate Communications Ratos, +46 8 700 17 63 Financial calendar from Ratos: Interim Report January - March 2008 8 May 2008 Interim Report January - June 2008 22 August 2008 Interim Report January - September 2008 7 November 2008 Ratos is a listed private equity company. The business concept is to maximise shareholder value over time by investing in, developing and divesting primarily unlisted companies. Ratos offers investors a unique investment opportunity. The equity of Ratos's investments is approximately SEK 12 billion and a market capitalisation of approximately SEK 33 billion. Ratos's holdings include AH Industries, Anticimex, Arcus Gruppen, Bisnode, Camfil, Contex, DIAB, EuroMaint, GS-Hydro, Haglöfs, HL Display, HÅG/RH/RBM, Hägglunds Drives, Inwido, Jøtul, Lindab, MCC, Medifiq Healthcare, Superfos and Other holdings.