EQT divests Contex Group to Ratos

EQT Danmark B.V. (“EQT”) and its fellow shareholders have entered into a definitive agreement regarding the sale of Contex Holding A/S (“Contex Group”), the world leading developer, manufacturer and supplier of innovative 2D and 3D digital imaging solutions, to Ratos AB (“Ratos”) for approximately USD 240 million (enterprise value). Contex Group, which is headquartered in Allerød, Denmark, had sales of USD 122 million, EBITDA of USD 24 million and employed approximately 435 people in 2006.

EQT acquired Contex in 1999 through a public offer for the then publicly listed company, and has since then built a 2D/3D imaging business with global market leading positions in all of its niche business areas. Following the acquisition in 1999, Contex Group has evolved from being solely focused on the large format scanner market, by entering into adjacent segments for 3D printers - machines that produce physical prototypes from computer-aided design (“CAD”) data - and medical imaging equipment, through the acquisitions of Z Corporation (headquartered in Boston, USA) in 2005 and Vidar Systems Corporation (headquartered in Herndon, USA) in 2002.

“During EQT’s ownership, Contex Group has developed significantly through a combination of acquisitions and high organic growth rates, which has resulted in the company’s revenues increasing fivefold from USD 25 million in 1999 to USD 122 million in 2006. During the spring of 2007, Contex Group developed a new five year strategy plan outlining the future direction of the company, and we see Ratos’ ownership as a natural step in the company’s further development”, says Peter Korsholm, Partner in EQT Partners, who advise the EQT funds.

Svenn Poulsen, CEO of Contex Group, added: ”Our new owners represent the “buy-and-build” philosophy, which is very familiar to us from the EQT ownership period. In essence, the focus is on growing the company, investing in opportunities and in achieving excellence through highly competent and skilled employees. Thus, from management’s perspective, Ratos is the ideal new owner to help us in achieving our ambitious vision and our plans for the future”.

The transaction is conditional upon customary conditions, including approval by the relevant competition authorities. SEB Enskilda Corporate Finance acted as sole financial advisor to Contex Holding A/S’ shareholders on this transaction.

Contact:

Peter Korsholm, Partner,
+45 33 12 12 36, peter.korsholm@eqt.dk

Johan Hähnel, Communications & PR,
+46 706 056 334, johan.hahnel@eqt.se