Ratos's wholly owned subsidiary Hägglunds Drives has concluded an agreement to acquire the operations of the American company Rineer Hydraulics Inc. The purchase price amounts to approximately USD 23 million. As a result of this acquisition, Hägglunds Drives will strengthen its product range and position in the North American market.
Hägglunds Drives will acquire the operations of Rineer Hydraulics through a net asset purchase. Rineer Hydraulics manufactures and sells hydraulic motors for applications in oil drilling, transport, agriculture, building and construction. The company shows strong growth with good profitability. Sales in 2007 totalled approximately USD 12m and the company reported an operating profit (EBITA) of approximately USD 3m. The head office is in Texas, USA, and the company has 80 employees.
- Hägglunds Drives CEO Per Nordgren comments on the acquisition: "The acquisition of Rineer Hydraulics complements and strengthens our product range as well as consolidating our position in the American market. In future we will also be able to offer Rineer's products to a global market through our strong global sales organisation."
Hägglunds Drives is a leading international supplier of complete hydraulic drive motors and drive systems. The largest customer segments include the mining, materials handing, marine and offshore industries. The company has subsidiaries in 16 countries. In 2007, Hägglunds Drives achieved sales of SEK 1,761m and reported an operating profit (EBITA) of SEK 360m. Ratos's stake in Hägglunds Drives amounts to 100%.
Ratos will not provide any capital in conjunction with the acquisition.
For further information, please contact:
Stig Karlsson, Industrial Advisor Ratos, +46 8 700 17 00
Per Nordgren, CEO Hägglunds Drives, +46 660 87 001
Clara Bolinder-Lundberg, Head of Corporate Communications Ratos, +46 8 700 17 63