Lindab, the European provider of steel and sheet metal solutions to the construction sector, today announced that it has signed an agreement to acquire of CCL Veloduct Ltd, a UK supplier of products and services for air-duct systems and air movement.
Lindab's plan is to combine Lindab Ltd's Ventilation Business Unit with CCL Veloduct to create a strong UK supplier of products and related equipment for circular ductwork, air movement and indoor climate.
The deal will make the UK one of the most important markets for Lindab's Ventilation Business Area, improving its offering to customers through a larger product base and a wider service network. The combination of the two companies is also expected to offer significant synergy benefits. The purchase price is agreed to GBP 27 million.
CCL Veloduct Ltd employs 265 people and had net sales in the twelve months ending June 2006 of GBP 39 million. Pro forma EBITA during this period amounted to GBP 3.2 million.
"This acquisition represents a further step in Lindab's strategy to accelerate growth in the circular duct business outside of the Nordic countries. Lindab is the market leader in Western Europe and the Nordic region, and will now reach that position in the important UK market as well." says Lindab CEO Mr Kjell Åkesson.
Lindab Group generated sales of SEK 6,214 million in 2005, of which the Ventilation business area represented SEK 3,241 million. Ratos acquired Lindab in 2001 and now controls 48 % of the company. Other shareholders are Skandia Liv, the sixth AP fund and members of Lindab's Board of Directors and management. The acquisition of CCL Veloduct does not require any further funding from Lindab's shareholders.
The acquisition is among other things subject to Lindab obtaining approval by relevant competition authorities. The transaction is expected to be closed in October.
For further information, please contact:
Kjell Åkesson, CEO Lindab, +46 706 785 007
Stig Karlsson, Senior Investment Manager Ratos, +46 70 641 13 45
Anna-Karin Celsing, Head of Corporate Communications Ratos, +46 70 399 62 39