Ratos sells Medisize to Phillips Plastics
This information is disclosed in accordance with the Securities Markets Act, the Financial Instruments Trading Act or demands made in the exchange rules.
Ratos has signed an agreement to sell 100% of the shares in the subsidiary Medisize to Phillips Plastics Corporation for approximately EUR 99.8m. The sale will generate an exit gain for Ratos of approximately SEK 40m and an average annual return (IRR) of approximately 4%. The sale is subject to approval from the relevant competition authorities. Medisize is an international contract manufacturer specialised in medical devices for delivery and administration of drugs and pharmaceutical packaging as well as development, manufacture and distribution of single-use plastic products for anaesthesia and intensive care. Medisize has 860 employees and the head office is located in Vantaa, Finland. Ratos acquired Medifiq Healthcare, previously a division in the Finnish company Perlos group, in 2006. Medisize Medical, a division within the Swiss group Medisize Holding, was acquired in 2008. In conjunction with this merger the new group was given the name Medisize. Medisize's sales totalled EUR 127.8m in 2010 with an operating profit (EBITA) of EUR 12.6m. "In recent years, Medisize has improved its operational efficiency and made major investments in the sales organisation and distribution. Medisize is a highly competitive and profitable niche player that has earned the increased confidence of major pharmaceutical companies due to the high quality of its operations. With the global company Phillips Plastics as its new owner Medisize can now take the next step, towards larger contracts and new geographic markets," says Ratos's CEO Arne Karlsson. The selling price for 100% of the shares (Equity Value) amounts to approximately EUR 99.8m with an Enterprise Value of EUR 127.5m. Ratos's exit gain will amount to approximately SEK 40m, calculated on the book value in Medisize at 31 March 2011. The final exit gain will be affected, among other things, by Ratos's share of profits from Medisize during the period until final completion of the deal. The average annual return (IRR) amounts to approximately 4%. Ratos's holding in Medisize is 98%. Phillips Plastics Corporation is a global contract manufacturer of high-tech products as well as specially manufactured injection-moulded plastic and metal products. Phillips Plastics has annual sales in excess of USD 250m and approximately 1,500 employees. The sale is subject to approval from the relevant competition authorities and some other conditions and is expected to be completed during the third quarter. For further information, please contact: Arne Karlsson, CEO Ratos, +46 8 700 17 00 Emma Rheborg, Head of Corporate Communications and IR Ratos, +46 733 80 22 63 Financial calendar from Ratos: Interim Report January - June 2011 19 August 2011 Interim Report January - September 2011 9 November 2011 Ratos is a private equity conglomerate. The company's mission is to maximise shareholder value over time through the professional, active and responsible exercise of its ownership role in primarily medium to large unlisted Nordic companies. Ratos's holdings include AH Industries, Anticimex, Arcus-Gruppen, Biolin Scientific, Bisnode, Contex, DIAB, EuroMaint, Finnkino, GS-Hydro, Hafa Bathroom Group, HL Display, Inwido, Jøtul, KVD Kvarndammen, Lindab, Medisize, Mobile Climate Control, SB Seating and Stofa. Ratos is listed on Nasdaq OMX Stockholm, and its market capitalisation is approximately SEK 39 billion.