Scancem sells Gyproc to British BPB plc

Scancem sells Gyproc to British BPB plc Scancem has sold its 75-percent stake in its plasterboard subsidiary, Gyproc, to the com-pany's London-based minority owner, BPB plc. As a result of the divestment, Scancem recorded a capital gain in excess of SEK 900 M. "The divestment of Gyproc is a good deal for all parties," commented Scancem CEO Sven Ohlsson in a statement. "Gyproc's earnings trend has been strong over the past few years, but to develop its markets and products further, the company needs an owner that is devoted exclusively to the plaster-board business. Scancem and BPB have jointly owned Gyproc since 1954 and our cooperation has been very rewarding. We are convinced that Gyproc's new membership in a specialized plaster-board group will now allow the company to achieve further success." After the divestment of Gyproc, Scancem's product areas are now focused on cement- and clay-based building materials as well as aggregates, Sven Ohlsson noted. "The capital gain on the Gyproc divestment will improve our financial key ratios," he con-tinued. "Scancem's equity ratio is expected to increase slightly more than 6 percent as a result of the divestment, and the Group's net indebtedness is anticipated to be reduced by approxi-mately SEK 1.2 billion." BPB, listed on the London Stock Exchange, is one of the world's leading manufacturers of gypsum-based building products. In the year to March 1998, BPB Group sales were the equi-valent of just over SEK 17 billion and the company's profit before tax and exceptional items was SEK 2.3 billion. BPB has 10,600 employees. Gyproc has plasterboard plants in Sweden, Norway, Denmark and Finland. Sales in 1997 totaled SEK 870 million and Gyproc has 480 employees. In addition to the Nordic countries, Gyproc has achieved considerable sales success in Estonia, Latvia, Lithuania and Russia. "Gyproc is a well managed company and the acquisition fits our global expansion strategy," commented David Leonard, Chief Operating Officer of the BP Gypsum Division. "I'm is also particularly pleased to welcome Gyproc into the Group as a company BPB has been involved in developing for the better part of 50 years". The acquisition requires the approval of Nordic competition authorities. For further information contact: Sven Ohlson, President and CEO, Scancem, Phone + 46 40 16 50 00 Lars Birve, President, Gyproc Group, Malmö, Sweden. Phone +46 40 16 56 00. Communications and Public Affairs Tel. +46 40 16 50 00, Fax +46 40 15 91 80 info@hq.scancem.com or ir@hq.scancem.com www.scancem.com ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1998/10/12/19981012BIT00030/bit0001.doc http://www.bit.se/bitonline/1998/10/12/19981012BIT00030/bit0002.pdf