Partek has signed an agreement to sell its majority holding in its insulation business to the Industri Kapital 1997 fund and to the management of Partek Insulation. The value of Partek Insulation in the transaction is above 800 MFIM. Partek releases about FIM 500 million in capital and books a capital gain. The about 40 percent ownership Partek is left with will give the Group a share of future rises in the value of the insulation business.
In December, 1998 Partek announced it was negotiating the sale of its insulation business with Industri Kapital with the aim to conclude the deal by the end of June, 1999. Now the transaction has been sealed. The transaction is subject to the approval of the concerned competition authorities. The portion corresponding to Partek's ownership will be eliminated in the accounts.
Partek Insulation will change its name to Paroc Group Oy Ab in accordance with its Paroc brand name. The company is based in Helsinki, Finland. Peder Biese will continue as President of the group.
"Paroc's management will invest in the company and it's holding will be significant. Paroc will continue the active implementation of its growth strategy in Europe, especially in Central and Eastern Europe. In recent years we have expanded in the Baltic region by establishing production plants in Lithuania and Poland, and our experiences are positive, says Peder Biese.
"During the past years Paroc has strengthened its position as the leading supplier of insulation material in the Nordic countries and the Baltic Sea area. We believe this trend will continue," says Björn Savén Chief Executive of Industri Kapital
"Today the condition of Partek's insulation business is so good and its market position so strong that it can go its own way. Partek's withdrawal from insulation is a consequence of the group's strategy to build itself a position as the leading provider of customer-responsive solutions for heavy materials handling, forestry and agriculture. Partek's shareholders will benefit from the development in the company's value as Partek remains a minority owner. The aim is, however, to expand Paroc's ownership base in the future," says Partek Chief Executive Christoffer Taxell .
Partek Insulation is the leading producer of rock-wool-based insulation in the Baltic region. It's net sales were FIM 1.4 billion (EUR 235 million) in 1998 and it employs 1,600 people. The operating profit was FIM 114 million (EUR 19 million). The main markets are Finland and Sweden.
For further information, please contact
Björn Savén, Chief Executive, tel + 44-171 304 4300 Harald Mix, Deputy Chief Executive, tel + 46-8 678 95 00 Michael Rosenlew, Director, tel + 46-8 678 95 00
Kari Heinistö, CFO, tel int. +358-204 55 4542 Paul Lönnfors, IR manager, tel int. +358-204 55 4842
Peder Biese, President, tel int +358-(0) 204 55 4295
Industri Kapital is a leading Northern European private equity fund, with assets under management in excess of one billion Euros (FIM 6 billion). Since 1989 more than 25 investments have been made in companies in various industries. The fund investors are mainly well-known Nordic, European and North American institutional investors.
Partek is the leading provider of customer-responsive logistical solutions for heavy materials handling, forestry and agriculture. The Group's net sales total FIM 13.5 billion (USD 2.7 billion), about 80 percent of which is generated outside Finland. Partek employs 11 700 people.