Opcon acquires rising star in bio-energy sector and sharpens focus on technology for renewable energy

Energy and environmental technology Group Opcon AB has signed a binding declaration of intent to acquire bio-energy company, Svensk Rökgasenergi AB.

Svensk Rökgasenergi is the leading supplier in the Nordic region and Baltic states of complete systems for flue-gas condensation and dust separation. These systems provide considerable energy savings and a better environment. Svensk Rökgasenergi develops and produces systems for district heating operators, for drying pellets at sawmills and pellets producers, and for cleaning gases in the process industry. The company currently has installations in the Nordic region, Baltic states, Germany and the Netherlands, and is active through partners in several other European countries. Customers include Fortum, Vattenfall, Eon, Rindi Energy and the French Dalkia Group.

“We are now taking a further step in our investment in renewable energy. The purpose of this acquisition is that we see clear and immediate synergies between Svensk Rökgasenergi’s activities and the ORC system we use in Opcon Powerbox to generate electricity from surplus heat. This deal also strengthens Opcon’s position as one of Sweden’s leading Cleantech businesses,” says Opcon’s President, Rolf Hasselström.

Since 2002 Svensk Rökgasenergi has increased sales almost tenfold and the company won business magazine Dagens Industri’s 2005 prize for fastest business growth in the Stockholm region. In 2007 sales are expected to be in the region of SEK 65-75 million with profits in line with Opcon’s financial target of EBIT at 10% or above. The acquisition is being financed with the issue of around 1.1 – 1.3 million new Opcon shares and is expected to boost earnings per share by SEK 0.40 – 0.50 after dilution in 2007.

“The bio-energy market is growing fast, not least globally. Being a part of Opcon, with its strategy for growth within renewable energy, gives us completely new opportunities to expand internationally with the technology that has already made us a leader in the Nordic and Baltic region. We also gain new strength in terms of resources and financing that will enable us to take on larger projects,” says Per Egeberg, CEO of Svensk Rökgasenergi.

“In addition to the synergies we see in the short term there are also significant energy and environmental profits to be gained in a future integration of the companies’ technologies. We also gain completely new opportunities to market our new and unique system for drying forest industry waste for the production of pellets. This product is attracting growing interest,” says Lennart Granstrand, chairman of the board of Svensk Rökgasenergi.

For more information about Svensk Rökgasenergi and their products, visit www.sre.se