Major acquisition within bioenergy paves the way for continued international expansion – Opcon signs LOI to acquire Saxlund

Opcon AB, the energy and environmental technology Group, has signed a binding letter of intent to acquire 75 percent of Saxlund Holding AB, which is one of Northern Europe’s leading suppliers of equipment for bioenergy plants. The Saxlund Group had sales of SEK 284 million in the 2007/2008 financial year and reported a positive operating profit.

The acquisition is being made to further strengthen Opcon’s expanding Renewable Energy business area with an internationally strong project organisation and a well-established customer and supplier network, especially in Europe. The move also reinforces Opcon’s position within bioenergy and means that Opcon can offer customers more comprehensive solutions.

Saxlund currently has a very strong position not least in the Nordic region, where the company has done business for over 40 years. The Group operates with subsidiaries on the fast-growing German and UK markets, which feature high electricity prices, large environmental awareness and subsidies for renewable energy production. The Group is also represented in other countries via 25 partners. In addition to activities within bioenergy, Saxlund supplies equipment for sludge, slag, ash and waste handling.

“We are currently creating a stronger, international organisation. This applies especially for the expanding bioenergy and pellets markets where we can see large synergies, not least with Opcon’s subsidiary, Svensk Rökgasenergi (SRE), which offers its services to the same or similar customers. With the acquisition of Saxlund and the synergies this gives for production, sales and purchasing we expect to continue the strong growth we have initiated within bioenergy, where we have experienced some organisational difficulties meeting demand. Meanwhile we gain a better platform for sales of more comprehensive solutions to the same customers, where our systems for waste heat recovery, either for electricity generation or for drying biomass, are unique for our markets,” says Rolf Hasselström, President and CEO of Opcon AB.

“This also means that we are speeding up expansion into Europe for our products and systems such as Opcon Powerbox for electricity generation from waste heat, among others. For both Opcon and Saxlund this also means that we can offer a broader product portfolio and quote for, and implement, larger projects. As the business area’s international presence increases in this decisive way it will lead to new opportunities to improve efficiency and co-ordinate production and sales,” says Rolf Hasselström.

Over the past six years Saxlund has had an average EBIT margin of 3 percent and like other businesses it has been affected by the financial crisis and the economic downturn, which has hit both sales and earnings negatively. The forecast in the short term is a decrease in sales as well as earnings. Within a year or so, however, the strong synergies Opcon sees in the combination of activities makes the outlook for increased earnings as well as growth very good. The purchase sum comprises newly issued shares in Opcon and a cash portion, the value to be set on the day of closing. The transaction is conditional on among other things Opcon’s Annual General Meeting mandating the Board to issue shares with deviation from existing preferential rights for shareholders.


For further information please contact:
Niklas Johansson, vice president, Investor Relations, tel. 08-466 45 00, 070-592 54 53


Opcon AB, Box 15085, SE-104 65 Stockholm
Tel. +46 (0)8 466 45 00, fax +46 (0)8 716 76 61
e-mail: info@opcon.se
www.opcon.se