ETTEPLAN ACQUIRED A MAJORITY STAKE IN SWEDISH GESAB AB
Stock exchange release – Published: 04.07.2007 16:00:00
Etteplan Oyj has today signed an agreement according to which the company acquired a majority stake in Swedish Gesab AB. Gesab, established in 1985, and its' subsidiaries is one of the leading providers of industrial consultancy services, primarily within product development and industrial engineering mainly for the automotive, aerospace and household industries. The Gesab Group has offices in Gothenburg, Kalmar, Linköping, Trollhättan, Eskilstuna, Stockholm and Budapest, Hungary. Presently the number of employees amounts to 240 people. In 2006 Gesab's consolidated revenue amounted to SEK 163.5 million and the consolidated operating profit to SEK 10.5 million. Gesab's total assets at 31 December 2006 stood at SEK 53.3 million. During the past years Gesab's business operations have grown significantly with increasing profits as a result. The company is expected to grow and the profitability is expected to remain on good level also during 2007. At the time of the signing of the contract Etteplan buys 58.0% of the shares and 73.4% of the voting rights from the sellers which are the main owners of the company. The main owners have also negotiated conditions through which the minor shareholders can accede to the contract in which case Etteplan's share of ownership could increase to 100%. The purchase price for 100% of the shares in Gesab AB will amount at the most to SEK 82 million. The definitive purchase price will depend on Gesab's equity position as per 30 June 2007 as well as the financial performance during 2007. The consideration will be paid in cash. The closing of the transaction is expected to take place in September. Following closing of the transaction Gesab will become a part of Etteplan's Swedish operations. Gesab is planned to continue as its own entity within the Etteplan Group and to develop its business according to jointly developed strategies and direction. According to Mr. Heikki Hornborg, the CEO of Etteplan the acquisition supports company's growth strategy in the Scandinavia. It further strengthens the group's competence and market position especially as a supplier in the automotive and aerospace industries in the Nordic Countries. Gesab's operations significantly support the service to Etteplan's existing key customers and as a consequence of the acquisition Etteplan can provide its customers significantly widened service offering. In addition the transaction further strengthens the realization of synergies between Etteplan's Swedish companies. The number of Etteplan Group's personnel in Sweden increases as a consequence of the transaction to nearly 900 persons. For Gesab AB becoming a part of a larger design sector group provide better possibilities to carry out comprehensive design projects, to develop and widen the operations and to expand the client base. As a consequence of the transaction the company's position in the market will strengthen. Etteplan is one of the largest companies in the Nordic Countries providing industrial technology design and expert services. The company supplies high-quality services for its customers for production and product development processes. The core areas of expertise are mechanical engineering, automation design and information design as well as software development and electronics design. In 2006, revenue of Etteplan Group was EUR 101.7 million. After the transaction the Etteplan Group employs close to 2 000 persons in Finland, Sweden, Germany, Italy, China and Hungary. Hollola, 4 July, 2007 Etteplan Oyj Board of Directors For additional information, contact: Etteplan Oyj, CEO Heikki Hornborg, tel. +358 400 873 063, Executive Vice President Jukka Rausti, tel. +358 400 612 463 or Gesab AB, Managing Director Janos Rakai, tel. +46 705 21 48 02 DISTRIBUTION: Helsinki Stock Exchange Principal media www.etteplan.com