Lindab's owners will release a total of SEK 1.2 billion through a redemption procedure. The redemption is possible due to the company's successful performance and strong cash flow. Ratos, which has a 48% stake in Lindab, will receive SEK 577m as a result of the redemption.
In spring 2001, Ratos together with Skandia Liv, the Sixth National Pension Fund and members of Lindab's management effected a buyout of Lindab, which then had annual sales of approximately SEK 5 billion, from the stock exchange. Following extensive reorganisation and a focus on both sales and production in partly new markets in Central and Eastern Europe, Lindab has shown favourable development in recent years. In 2005, Lindab acquired Astron Building Systems, with annual sales of over SEK 1 billion. Today, Lindab has annual sales of approximately SEK 7 billion. Ratos has invested a total of SEK 1,059m in Lindab.
Lindab's sales, profitability and cash flow have improved so that the Group's loans could be amortised. The company's interest-bearing net debt in relation to profit before depreciation (EBITDA) today amounts to approximately 2.2 compared with 4.8 at the end of 2001. The company's owners have now, together with the board and management, decided to create a more efficient capital structure. A new credit agreement is therefore being concluded with a consortium of banks and the board is proposing a redemption procedure to Lindab's annual general meeting. This credit agreement will give Lindab access to committed credit facilities that will cover the Group's entire borrowing requirements for a number of years. The new agreement also gives Lindab more favourable interest terms than earlier credit agreements.
In accounting terms, for Ratos the redemption procedure means that Ratos's consolidated book value for Lindab will decrease by SEK 577m. At the same time, Ratos's cash and cash equivalents will increase by a corresponding amount.
Ratos CEO, Arne Karlsson, comments: "Of course, it is highly satisfactory that Ratos is already able to realise some of the value appreciation in the company through this proposed redemption. The fact that this is now possible is due to Lindab's success in recent years, which is primarily thanks to the company's extremely competent management. We now look forward to continued growth and profitability improvements for Lindab."
Lindab is Europe's leading manufacturer of steel components and systems for ventilation and other building structures, including complete buildings.
For further information, please contact:
Arne Karlsson, CEO Ratos, +46 8 700 17 00
Anna-Karin Celsing, Head of Corporate Communications Ratos, +46 70 399 62 39