Opcon acquires two companies

Opcon acquires two companies The Board of Directors of Opcon AB have decided to acquire two Swedish companies, Svenska Rotor Maskiner AB (SRM) and Lysholm Technologies AB (LT). All the parties have signed a declaration of intent. The acquisition is expected to be completed before the end of November. The deal will see the sellers become significant owners in Opcon AB, which is listed on Stockholmsbörsen. SRM has invented, developed and licensed screw compressors and now has over 70 active patents and 35 licence holders for various industrial applications. SRM had sales turnover of SEK 46 million in 2002 and made an operating profit of SEK 2.4 million. Similar sales turnover figures are forecast for 2003 and the operating profit is expected to improve. Opcon's strategic aim with the purchase is, among other things, to safeguard intellectual property rights and globally advanced competence for the continued development and manufacturing of air systems for fuel cells. The acquisition gives Opcon access to SRM's many years of experience in the compressor sector. SRM is currently active in the development of air systems for fuel cells. Opcon's customers in the fuel cell sector are currently reorganising their purchasing structures ahead of series manufacturing. Opcon's continuing involvement in the fuel cell sector depends on being able to offer customers a complete air system comprising frequency converter, electric motor, compressor and, at a later stage, an expander and heat exchanger. Opcon has developed, or is in the process of developing, all the products necessary for a complete air system except for a frequency converter. However, a licence option for a frequency converter has been signed with the Swedish company, NFO Drives AB, with whom Opcon co-operates. Lysholm Technologies AB (LT) is a sister company to SRM. LT had sales turnover in 2002 of SEK 20.7 million and an operating profit of SEK 2.5 million. The company forecasts that it will double sales turnover in 2003 and increase its operating profit. LT competes with the Opcon subsidiary, Opcon Autorotor, primarily on the US aftersales market for compressors used in combustion engines. The acquisition will give Opcon considerable synergies in marketing and manufacturing. Future rationalisation of the product ranges of the various companies will also generate cost savings. LT has a licence agreement with a major US systems supplier to the auto industry which will lead to series deliveries of compressors to the Ford Group and other companies from the final quarter of 2003 and onwards. This will give the company the opportunity to further rationalise manufacturing and purchasing. An acquisition of LT will also provide an opportunity to benefit from synergies between another Opcon subsidiary, Laminova, and LT in the field of intercoolers for the auto and fuel cell sectors. Both SRM and LT are based in Nacka outside Stockholm. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2003/11/03/20041004BIT20070/wkr0001.pdf