Ratos is to acquire 66% of the Danish company AH Industries which supplies components and services to customers in the wind power, marine and offshore industries. The seller is the company's founder, Arne Hougaard and his daughter Liselotte Hougaard Beck. They will remain as owners of 26% of the company. Ratos investment is expected to amount to SEK 296m.
Ratos CEO Arne Karlsson: "AH Industries has shown fantastic development in recent years. Our assessment is that this trend will continue as a result, among other things, of the good prospects for the wind power industry. We believe that this industry will see consolidation where AH Industries will be well placed to play an active role."
AH Industries originated in AH Bolte which was founded in the mid-1980s. Today, AH Bolte is one of Europe's biggest suppliers of flanges to the wind turbine industry. Hokodan, AH Bolte's sister company, supplies large machined metal components to the wind turbine, marine and offshore industries. The group has approximately 180 employees at its plants in Kolding and Horsens on Jutland.
"I see major advantages in Ratos becoming a part owner of the group," says AH Industries' founder Arne Hougaard. "Ratos's financial strength and experience of change processes in companies, combined with the high expertise of AH Industries' management, will give the group new opportunities for development. I am therefore convinced that the change of ownership will benefit both our customers and our employees."
In 2006/07 AH Industries' pro forma sales totalled approximately SEK 470m (320) with an operating profit (EBITA) before extraordinary costs of approx. SEK 91m (50). For 2007 EBITA before extraordinary costs is expected to amount to approximately SEK 115m. The global wind power industry has seen annual growth of almost 20% over the past five years. Growth in 2006, which was a record year for the industry, amounted to 30%. A total of 15 GW was added on a global basis in the form of new capacity, of which Europe accounted for over half. Industry analysts expect the high rate of investment in new wind mills to continue in the years ahead.
"We have been making active efforts to increase our involvement in Denmark for some time. This is why it is particularly pleasing that together with our Danish Advisory Board, with Peter Leschly as chairman, we have succeeded in creating a good project flow that has now resulted in today's deal," says Arne Karlsson.
Ratos is acquiring AH Industries to an Enterprise Value of SEK 885m. Ratos acquire 66% of AH Industries, which is financed with SEK 296m of equity from Ratos. Senior executives in the company will be invited to co-invest with Ratos.
Today's deal is subject to approval from the relevant authorities.
For further information, please contact:
Arne Karlsson, CEO Ratos, +46 703 79 79 79
Clara Bolinder-Lundberg, Head of Corporate Communications Ratos, +46 707 19 84 43
Steffen Busk Jespersen, CEO AH Industries, +45 75 57 73 13