Stove and fireplace manufacturer Jøtul is acquiring Hammerstrøm AS - Norway's leading supplier of flue pipes and chimney accessories.
Jøtul, which was founded in 1853, has increased its sales by an average of 10% per year in recent years. The company's products are sold globally, primarily through specialty stores but also via DIY outlets in some markets. Jøtul's market share in Scandinavia amounts to approximately 25% while the global market share is almost 10%.
Erik Moe, CEO of Jøtul, comments: "The acquisition of Hammerstrøm is well in line with Jøtul's acquisition strategy. Through Jøtul's distribution channels Hammerstrøm, which currently holds a strong position in Norway, will be given excellent opportunities to increase sales in other markets as well."
Hammerstrøm had sales of NOK 40m in 2006 with an operating profit of NOK 7.4m and has 34 employees. In addition to flue pipes, Hammerstrøm manufactures a number of products for chimney renovation and also supplies maintenance products for stoves and fireplaces. The company has carried out extensive investments in a more effective production structure in recent years.
The Jøtul group which is 62.5 % owned by Ratos has 820 employees in 10 countries. The group had sales of NOK 904m in 2006 with an operating profit (EBITA) of NOK 81m. The acquisition of Hammerstrøm will not require additional capital from the owners.
For further information, please contact:
Erik Moe, CEO Jøtul, +47 906 92 419
Anna-Karin Celsing, Head of Corporate Communications Ratos, +46 703 99 62 39
Per Frankling, Senior Investment Manager Ratos, +46 8 700 17 80