At the end of the acceptance period for Ratos' bid to acquire the American filter manufacturer Farr Company shareholders representing 93% had accepted the offer. Ratos has therefore decided to complete its bid. Ratos has also decided to exercise its option to merge Farr with the Swedish company Camfil. Ratos and Camfil are now preparing for the next stage in the consolidation of the air filtration market and Ratos have decided to invest an additional SEK 200 million in the merged group.
Acceptance of Ratos' bid for the American air filter manufacturer Farr amounted to approximately 93% and the US competition authorities have approved the deal. The bid - which was made through an American wholly owned subsidiary of Ratos - equals SEK 1.2 billion and will now be completed through compulsory purchase of the remaining shares.
Farr to merge with Camfil
Parallel with the acquisition process, Ratos examined various options for co-operation between Farr and the Swedish air filter company Camfil. A merger of the two companies, where Ratos receives a stake in Camfil in exchange for Farr, has been found to offer the best form for future co-operation.
Through a merger with Farr Camfil will establish comprehensive sales and marketing coverage in both Europe and the US as well as an extended and a strengthened product range. The company, which is expected to achieve annual sales of SEK 2.6 billion, will be among the world's largest manufacturers of air filters and global leader in its product segments.
Camfil's CEO Jan Eric Larson comments: "Merging these two companies will put us in a fantastic position from which to continue our global expansion."
Global consolidation with Trosa, Sweden, as a base
The market for air filters is growing. Environmental requirements from sections of the process and pharmaceutical industries, as well as rising demands for clean indoor air, are pushing this development forward. At the same time, demands are growing on manufacturers to have a global presence and make major investments in research and development. Ratos and Camfil therefore expect consolidation within the industry to continue.
Bo Jungner, Senior Investment Manager at Ratos and responsible for this deal, sees today's announcement as a starting point for the next stage in the consolidation of the global air filter market.
"Ratos' transaction expertise and financial resources combined with Camfil's industry expertise, provide a very solid base from which to create and develop the world's leading air filter manufacturer."
Ratos to increase its investment
In order to prepare for further acquisitions in this sector, Ratos has decided to raise its investment in the new larger Camfil by SEK 200 million to a total of SEK 450 million. This will increase Ratos' holding to approximately 30%.
Ratos' CEO, Arne Karlsson: "The investment in Farr and the continued co-operation with Camfil are excellent examples of the type of investment Ratos will be making within the framework of the company's new private equity strategy."
Senior Investment Manager, Ratos, +46-8-700 17 00
Jan Eric Larson,
President & CEO, Camfil, +46-156-536 02www.camfil.se