Ratos is to acquire 100% of EuroMaint from Swedcarrier. EuroMaint, which is Sweden's leading maintenance company for trains, reported sales of over SEK 2 billion in 2006 with an operating profit (EBITA) of SEK 102 million. Ratos's investment will amount to approximately SEK 440 million.
EuroMaint was formed in 2001 and has undergone major changes since then. A number of workshops have been closed and management and control systems developed and improved. Today the company is profitable once again and the operating profit (EBITA) in 2006 amounted to SEK 102m (SEK 120m excluding extra ordinary items).
The company's core business - maintenance and rebuilding services for freight and passenger trains - had sales of SEK 1.8 billion last year. Annual growth has been between 5 and 10% during the recent years and the group has a market leading position. The maintenance company EuroMaint Industry was acquired from Volvo Cars in 2005. Operations within Industry reported sales of SEK 230m in 2006.
Ratos CEO Arne Karlsson: "Under its present management EuroMaint has succeeded in strengthening both the company's position in the Swedish market and profitability. In our opinion there are continued opportunities for further development."
EuroMaint Rail today has workshops in 13 localities that together cover the entire Swedish rail network. A workshop will open later this year in Latvia to focus on refurbishing of components. EuroMaint Industry, which provides maintenance services to the engineering industry, currently conducts operations in four locations in Sweden.
Pether Wallin, CEO of EuroMaint, comments: "We are looking forward to starting a new chapter in EuroMaint's development with Ratos as owner. Ratos has experience of strategic processes and industrial restructuring - experience that will benefit all EuroMaint's stakeholders."
The Enterprise Value of 100% of EuroMaint is SEK 1 200m. SEK 440m of the investment will be financed with equity from Ratos. Senior executives in the company will be invited to co-invest with Ratos.
Today's deal is subject to approval from the relevant authorities.
For further information, please contact:
Arne Karlsson, CEO Ratos, +46 8 700 17 43
Clara Bolinder-Lundberg, Head of Corporate Communications Ratos, +46 70 719 84 43
Pether Wallin, CEO EuroMaint, +46 8 762 52 00