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Share 2016-09-29 17:29 RATOS B 40.64 SEK

Contex A/S sold to Procuritas

2012-11-30

This information is disclosed in accordance with the Securities Markets Act, the Financial Instruments Trading Act or demands made in the exchange rules.

Ratos's subsidiary Contex Group has signed an agreement to sell Contex A/S to the private equity fund Procuritas (Procuritas Capital Investors V LP). The selling price (enterprise value) amounts to USD 41.5m. In conjunction with completion of the deal Contex Group will be wound up and a dividend paid whereby Ratos will receive approximately SEK 175m. The exit result in Ratos is expected to amount to approximately SEK -125m.

The Danish company Contex A/S is the world's largest manufacturer of large-format 2D scanners. Contex sells both under its own brand and as an OEM supplier to HP, among others.

In 2011 Contex A/S's sales totalled USD 46.1m and operating profit (EBITA) adjusted for costs affecting comparability amounted to USD 4.9m. Ratos acquired Contex Group in 2007 when the company consisted of three subsidiaries: Contex A/S, Z Corporation and Vidar Systems. The two latter companies were sold to the American company 3D Systems in 2011.

Ratos CEO, Susanna Campbell, comments: "We acquired Contex at the height of the boom in 2007 and the financial crisis with the subsequent recession unfortunately meant that Contex Group became a bad investment for us. Operationally we are still pleased since the company's management has achieved a fantastic turnaround and due to our continued investment in research and development, new products were launched in the market which contributed to today's good earnings and market position. The company is now ready for its next journey and we have therefore decided to sell."

The selling price (enterprise value) amounts to USD 41.5m. Once the sale is completed, Contex Group will be wound up and a dividend of the remaining assets in the company (approximately SEK 175m) will be paid. The exit result in Ratos is expected to amount to approximately SEK -125m, calculated on the book value of Contex Group at 30 September 2012. The final exit result will be affected, among other things, by earnings from Contex A/S during the period until completion of the deal. Average annual return (IRR) on the total investment in Contex Group has been -16%. The sale is expected to be completed at the beginning of January 2013. Ratos's holding in Contex Group is 99.6%.

For further information, please contact:
Susanna Campbell, CEO Ratos, +46 8 700 17 00
Emma Rheborg, Head of Corporate Communications and IR, +46 8 700 17 20