Semcon has signed a Letter of Intent with the Pelmatic Group

Semcon chooses aggressive expansion in southern Sweden and the Öresund region - signed a letter of intent with the Pelmatic Group Semcon has signed a letter of intent with the Pelmatic Group, with a view to acquiring Pelmatic. Negotiations with Stefan Johansson, the primary owner of Pelmatic, should be concluded sometime in April. The purpose of this step is to create a broader platform for the continued growth of the Semcon business areas "Semcon e-Design" and "Semcon Industrial Design" within interesting geographic markets in Sweden, and internationally. In addition, Semcon will strengthen its position in Denmark. The parent company, Pelmatic AB, has its head office in Karlskrona. That company was started in 1980, the same year Semcon was established. Today, the Group employs 135 consultants. Pelmatic is active in four areas: IT, industrial engineering, calculation and marine engineering. "A possible acquisition of Pelmatic will strengthen Semcon's position as the predominant development company in Scandinavia," declares Hans Johansson, the Managing Director of Semcon. Pelmatic, at present, has a sales volume of 100 million SEK, excellent profitability, and, as a part of the Semcon Group, should be able to double its business in the course of the next three years. "There are many advantages of acquiring Pelmatic," continues Hans Johansson. "They are well-established in the expansive Karlskrona-Ronneby region, which has a leading role in the IT and telecom areas, today. This creates a unique opportunity for Semcon's continued expansion in design and IT." He also emphasises that the Pelmatic subsidiary in Copenhagen, Pelmatic Kund E. Hansen, can quickly strengthen its position in Denmark, where Semcon's activities, up until now, have focused primarily on the educational market. "Now we have a more solid base by owning a reputable consulting company. Their thorough expertise of interior design, Danish design and world class styling bodes especially well for the future. This acquisition also gives us good relationships with customers all over the world." Today, Pelmatic Kund E. Hansen is a well-run company with a fine reputation and a staff of about 50, and is one of the world leaders in its niche. This company is active internationally, has a global customer list, and is active in the development and design of marine technology. "Pelmatic and its employees see Semcon's acquisition as something positive," says Stefan Johansson, Managing Director and primary owner of Pelmatic. We will now have access to Semcon's thorough expertise in four business areas; and we also see great advantages in gaining access to a wider network of partners. For more information, please contact: Hans Johansson, Managing Director, Semcon AB, phone: +46 (0)31-721 08 66, cellular: +46 (0)70-591 43 34 or Michael Gustavsson, Business Development, Semcon AB, phone: +46 (0)31-721 85, cellular: +46 (0)70-310 33 37. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/03/20/20000320BIT00540/bit0001.doc http://www.bit.se/bitonline/2000/03/20/20000320BIT00540/bit0002.pdf