Dynal Biotech's owners have concluded an agreement to sell all the shares in the company to the American biotech company Invitrogen Corporation for a total amount of approximately SEK 2,450 million. For Ratos this deal provides sales income of approximately SEK 600 million and an exit gain of estimated SEK 300 million. The average annual return (IRR) on Ratos's investment thus amounts to approximately 24%. In NOK the corresponding IRR would be 28%.
In autumn 2001, Ratos invested SEK 292 million in the Norwegian biotech company Dynal Biotech. The investment was carried out in partnership with the private equity company Nordic Capital which is majority owner in the company. Dynal Biotech's operations have developed well ever since. Revenues rose by 45% to NOK 607 million in 2004, and operating profit (EBITA) has increased from NOK 106 million in 2001 to an estimated NOK 169 million in 2004. The company's growth has been both organic and via acquisitions.
Invitrogen is a global biotech tools company whose research-related products and services support academic and government research institutions and pharmaceutical and biotech companies. The company, which is listed on Nasdaq, has approximately 4,000 employees and operates in more than 70 countries worldwide.
Ratos's CEO Arne Karlsson comments on today's deal: "Just in the three and a half years that we have been owners of Dynal Biotech the industry has undergone major changes. Throughout this entire period the company has shown good profitability and strengthened its positions in its markets. We are convinced that Dynal will be able to continue this exciting development with its new owner."
Dynal Biotech is a world leader within research, development and manufacture of magnetic and non-magnetic micro particles. Applications for the company's products include separation of biological material such as cells, DNA, microorganisms and proteins.
This deal is subject to approval by the relevant competition authorities. The definite exit gain will be reported following competition authority approval and final completion of the deal. Preliminarily, this is expected in the first quarter of 2005. Exit gain will be affected, among other things, by Ratos's profit shares from Dynal Biotech during the period until final completion of the deal and by translation differences. Ratos holding in Dynal Biotech corresponds to 25% before dilution.
For additional information, please contact:
Arne Karlsson, CEO Ratos, +46 8 700 17 00
Anna-Karin Celsing, Head of Corporate Communications Ratos, +46 8 700 17 49