Ratos to sell Alimak Hek - exit gain SEK 735m

Ratos to sell Alimak Hek - exit gain SEK 735mAlimak Hek's owners have concluded an agreement on the sale of all the shares in the company to the European private equity company Triton for SEK 2,191m. For Ratos the deal will generate an exit gain of approximately SEK 735m. The average annual return (IRR) on Ratos's investment amounts to 30%. Ratos and 3i have owned Alimak Hek since their joint acquisition in 2001 when Ratos invested SEK 227m. Alimak Hek's operations have shown a very positive development over the past five years. The company's sales have risen from SEK 1,166m in 2001 to forecast pro forma sales in excess of SEK 1,600m in 2006. At the same time, operating result (EBITA) has swung from a loss of SEK 3m in 2001 to an estimated pro forma profit of over SEK 240m for the current year. During Alimak Hek's period as a Ratos holding, the company carried out extensive internal measures designed to control costs with effective sales work and well-conducted acquisitions. The strong growth in recent years had a major impact on Alimak Hek's earnings with a substantial rise in revenues without a corresponding increase in the company's fixed costs. - Ratos CEO, Arne Karlsson, comments on today's deal: "Extensive internal work in recent years combined with the focused growth strategy laid the foundations for Alimak Hek's excellent earnings. The company's management and employees have also created conditions for continued favourable development." Alimak Hek, which is a world leader in development, manufacture, rentals and sales of rack and pinion driven equipment for vertical access, has almost 900 employees worldwide. The company's hoists and platforms are primarily sold to customers in the construction, offshore and other industries. The sale of Alimak Hek is subject to approval by relevant competition authorities. The deal is expected to be completed in the first quarter of 2007. Ratos's exit gain is estimated based on the book value as of 30 September 2006. The definite exit gain will be affected by Ratos's profit shares from Alimak Hek in the period until final completion of the deal. For further information, please contact:Arne Karlsson, CEO Ratos, +46 8 700 17 00Petter Arvidson, CEO Alimak Hek, +46 70 590 59 31Anna-Karin Celsing, Head of Corporate Communications Ratos, +46 703 99 62 39 www.alimakhek.com www.ratos.se Financial calendar from Ratos:Year-end report 2006 22 February 2007Annual General Meeting11 April 2007Interim report January-March9 May 2007Interim report January-June 21 August 2007 Interim report January-September9 November 2007 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 thus offers stock market players a unique investment opportunity. The equity of Ratos's investments is approximately SEK 9 billion. Ratos's holdings include Alimak Hek, Arcus Gruppen, Anticimex, Bisnode, Bluegarden, Camfil, DIAB, GS-Hydro, Haendig, Haglöfs, HL Display, Hägglunds Drives, Inwido, Jøtul, Lindab, Medifiq Healthcare, Superfos and Other holdings.Attachment: Press release (PDF)Text version / Internet version / Print / Close