Scandinavian Equity Partners acquires Electrolux' European kitchen furniture operations
Scandinavian Equity Partners Ltd. ("SEP") has reached an agreement with AB Electrolux to acquire 100% of Ballingslöv AB, Dansk Formpladeindustri A/S and the Paula Rosa division (together the "Group").
The Group develops, manufactures and markets branded kitchen furniture and related components and is a leading producer in its segments in Scandinavia and the UK. Ballingslöv is a successful Scandinavian producer of high quality fitted kitchens. Dansk Formpladeindustri produces custom kitchen worktops, primarily for the Scandinavian market. Paula Rosa is a leading producer of fitted kitchens to the private new building sector in the UK. In 1997, the Group generated total sales and operating profit of approximately SEK 675 million and SEK 50 million respectively. The Group has 700 employees, out of which 315 are employed in Sweden.
"We are impressed by the Group's strong brand names and market position. We are therefore happy to be able to invest in the Group and to participate in the future growth and development. Our intention is to list the Group on a stock exchange within three to five years", says Mr. Lars-Åke Helgesson.
Mr. Nils-Erik Danielsson, Managing Director of Ballingslöv and Head of the Group states: "We welcome SEP as our new owners and believe that the Group as an independent and focused kitchen furniture company has a great potential to grow sales and earnings. We look forward to the new ownership and regard it as a great challenge and source of motivation".
SEP has established a new company, Ballingslöv Holding AB, to acquire the Group. Mr. Nils-Erik Danielsson will become Managing Director of Ballingslöv Holding. The Board of Directors will consist of: Lars-Åke Helgesson (Chairman of the Board), former CEO of STORA, Svend Holst-Nielsen, CEO of Unilever Sverige AB, Rainer Alfström, former Managing Director of Electrolux Scandinavia AB, Nils-Erik Danielsson, Managing Director of Ballingslöv AB, Andreas Tallberg, Partner in EQT Partners AB, Fredrik Åtting, Partner in EQT Partners AB and employee representatives.
SEP is an investment company, which invests in medium sized Northern European companies with a considerable potential for development. SEP is owned by Investor AB, AEA Investors Inc. and S-E Banken with almost SEK 3 billion in committed capital at its disposal. SEP has already invested SEK 2.4 billion in the following companies: Brukens Nordic AB, Sabroe Refrigeration A/S, Orrefors Kosta Boda AB (Royal Scandinavia A/S), Perlos Oy, Duni AB, FlexLink AB, Struers A/S, TAC AB and StjärnTV AB. EQT Partners AB is acting as the exclusive investment advisor to SEP.
June 29th 1998
Scandinavian Equity Partners Ltd
More information on Scandinavian Equity Partners and EQT is given on EQT's home page www.eqt.se