Opcon: Sells Engine Efficiency business area – Purchase Price of SEK 218 m

Opcon, the energy and environmental technology Group, has signed an agreement to divest its subsidiary, SEM AB, and SEM’s subsidiary, SEM Technology Suzhou Co. Ltd in China, which together constitute the Engine Efficiency business area. Purchase price amounts to SEK 218,3 million on a debt free basis with a variable component depending on performance that may increase or decrease final purchase price by a maximum of SEK 10 million. The acquirer is the investment fund Perusa Partner Fund 2. Closing is planned to second half of November 2012.

Settlement will be made via the buyer taking over external debt including operational and financial leasing of approx. 70 m SEK, 90 m SEK in cash at closing and with the remaining amount after adjustments for working capital, variable component etc. being settled through an interest bearing vendor note payable after 36 months.

SEM works primarily with energy-effective solenoid technology and ignition systems for combustion engines, including ethanol, natural gas and biogas engines. The Engine Efficiency business area currently has around 250 employees in Sweden and China and had sales turnover of SEK 235 million in 2011 with an operating profit of SEK 30 million. Sales turnover during the first half of 2012 was SEK 132 million with an operating profit of SEK 16 million.

“We are now further refining our business so that we can focus even more on energy and environmental technology within our Renewable Energy business area. This also means a considerable strengthening of our financial position. We are step by step forming an Opcon with greater focus,” says Rolf Hasselström, President and CEO of Opcon.

“The sale also means that we reduce the number of business sites for the Group with synergies within administration and management enabling further savings at Group level. As an example our split headquarters between Åmål and Stockholm will be moved completely to Stockholm. This will also trigger an overhaul of the organizational structure and strategy of our Renewable Energy business area,” says Rolf Hasselström, President and CEO of Opcon.

“The Engine Efficiency business area has been a very well-managed, profitable and technically advanced business with an impressive list of customers. I am confident that Perusa will be a very good owner for SEM and an owner that can focus on developing SEM and taking advantage of their growth opportunities,” says Rolf Hasselström, President and CEO of Opcon.

Due to the sale of the Engine Efficiency business area Opcon’s quarterly report for January-September 2012 will be postponed and published on November 9 2012.

For further information, please contact

Niklas Johansson, vice president, Investor Relations, Opcon AB, tel. +46 8-466 45 00,+46-70-592 54 53

Opcon AB, Box 15085, 104 65 Stockholm, Sweden
Tel. +46 8-466 45 00, fax+46 8-716 76 61
e-mail: info@Opcon.se

The Opcon Group

Opcon is an energy and environmental technology Group that develops, produces and markets systems and products for eco-friendly, efficient and resource-effective use of energy.

Opcon has activities in Sweden, China, Germany and the UK. There are around 400 employees. The company’s shares are listed on Nasdaq OMX Stockholm. The Group comprises two business areas:

Renewable Energy focuses on the following areas: electricity generation based on waste heat, bioenergy-powered heating and CHP plants, pellets plants, drying of biomass, handling systems for biomass, sludge and natural gas, industrial cooling, flue gas condensation, treatment of flue gases and air systems for fuel cells.

Engine Efficiency focuses on energy-efficient solenoid technology and ignition systems for combustion engines including ethanol, natural gas and biogas engines.

The information in this report is such that Opcon AB (publ) is obliged to disclose in accordance with Swedish securities markets law and/or Swedish law on trading in financial instruments.

This information was released for publication on Thursday 8 November 2012 at 08.10 (CET).


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