Nederman is strengthening its world-leading position in industrial air filtration by acquiring Environmental Filtration Technologies (EFT). The purchase price will preliminary be MSEK 249 (cash-free/debt-free enterprise value). The final price adjustment will as per closing. EFT had sales of MSEK 834 in 2011 with a workforce of 385.
"The acquisition of EFT will provide Nederman with a strong foothold on the important North American market and will also strengthen us in other important markets, such as Australia. EFT's solutions and knowhow within business segments in the base industry (i.e. mining-, chemical- and steel industries) complement Nederman's and further strengthen our world-leading position in industrial air filtration," says Nederman's CEO, Sven Kristensson.
The acquisition is expected to be finalized during September 2012. The integration of the businesses' activities will begin immediately and is expected to be completed by the end of 2013. The acquired business activity will be consolidated into the Nederman Group from October 1, 2012. Financing for the transaction has been secured and the acquisition is not subject to approval by the authorities.
Acquisition logic
EFT focuses on industrial air filtration solutions. The acquisition significantly strengthens Nederman's positions in the North American market and Australia. EFT also exports to growth markets where Nederman is already present, which can be utilized for further expansion.
This acquisition will allow Nederman to extend its customer base, enter new important business segments, add valuable competence and increase systems and aftermarket sales. In all, this acquisition creates a substantial platform for further growth.
EFT
EFT is one of the USA's leading industrial air filtration companies. The company markets the well-known brands: MikroPul, Menardi, Filtrex, LCI and Pneumafil.
The EFT group has the majority of its sales in North America and its head office is in Charlotte, North Carolina, US. The group has subsidiaries in Australia, Germany and France. www.environmentalfiltration.com
Effect on Nederman's financial position
The integration and restructuring costs are not expected to exceed MSEK 50. The transaction costs will negatively impact Nederman's profits by MSEK 14 in 2012. The integration of the companies is expected to provide synergies of around MSEK 45.
Pro-forma accounts
+------------+--------+----------------+-------------------------------------+
| |Nederman|Pro-forma Nman +|Pro-forma Nman + EFTJan. - June 2012*|
| |2011 |EFTJan. - Dec. | |
| | |2011* | |
+------------+--------+----------------+-------------------------------------+
|Net sales | 2 001 | 2 835 |1 427 |
|(MSEK) | | | |
+------------+--------+----------------+-------------------------------------+
|EBITDA | 209 | 245 |114 |
|(MSEK) | | | |
+------------+--------+----------------+-------------------------------------+
|Net debt | 387 |Approx. 650 |Approx. 690 |
|(MSEK) | | | |
+------------+--------+----------------+-------------------------------------+
|Average no. | 1 434 | 1 819 |1 900 |
|of employees| | | |
+------------+--------+----------------+-------------------------------------+
*The pro-forma figures exclude restructuring costs, and are estimates that assume that EFT had been part of the Nederman Group for the entire pro-forma period. The information in the pro-forma accounts should be seen as preliminary and does not necessarily provide an indication of the Group's future results.
For further information
A telephone conference for analysts and journalist will be held at 10:00 CET on the same day as this press release. Tel: +46 (0)8 21 58 91, meeting code 150367#.
A presentation of the acquisition is available at: www.nederman.com/about-us/investors
Sven Kristensson, President and CEO Nederman
Tel: +46 (0)42 18 87 00
email: sven.kristensson@nederman.com
Stefan Fristedt, CFO Nederman
Tel: +46 (0)42 18 87 00
email: stefan.fristedt@nederman.com
This press release contains certain forward-looking statements. Such statements include known and unknown risks, uncertainties and other key factors that can cause the company's actual results and development, or development in the industry, to significantly deviate from such results or development that the forward-looking statements comprise. The company takes no responsibility for updating or publishing possible modifications concerning forward-looking statements in order to reflect events, circumstances or changes of expectations after the date of this press release.
Nederman Holding AB is legally bound in accordance with the Securities Market Act for publishing information in this press release. This information was submitted for publication at 08:00 CET on 11 September 2012.
Facts about Nederman
Nederman is one of the world's leading companies supplying products and solutions in the environmental technology sector focusing on industrial air filtration and resource management. The company's products and systems contribute to reducing the environmental effects from industrial production, to creating safe and clean working environments and to boosting production efficiency. Nederman's offering encompasses everything from the design stage through to installation, commissioning and servicing. Sales are carried out via subsidiaries in 29 countries and distributors in over 30 countries. Nederman develops and produces in its own manufacturing and assembly units in Europe, North America and Asia.
The Group is listed on Nasdaq OMX, Stockholm. Nederman Holding AB (publ), P.O. Box 602, SE-251 06 Helsingborg, Sweden.
Corporate registration number: 556576-4205
http://www.cisionwire.com/nederman/r/nederman-acquires-us-group-environmental-filtration-technologies,c9303356
http://mb.cision.com/Main/1732/9303356/43692.pdf