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Ratos Ratos has concluded an agreement for the sale of all the shares in the wholly owned subsidiary Hägglunds Drives to the German company Bosch Rexroth for a share price of approximately SEK 4,300m. The sale will generate an exit gain for Ratos of approximately SEK 4,400m. The average annual return on Ratos's investment in Hägglunds Drives amounts to 56%.
Hägglunds Drives is an international supplier of hydraulic drive systems, drive motors and services, in particular for industrial heavy duty applications. Drive systems are used in the mining, materials handling, recycling, pulp and paper, marine and offshore, rubber, plastics and sugar industries. The company has subsidiaries in 16 countries with exports accounting for more than 90% of sales. The head office is in Mellansel, outside Örnsköldsvik, Sweden, and the company has approximately 900 employees.
Ratos became a part owner of Hägglunds Drives in 2001 in conjunction with the buyout of Atle. Ratos has been the sole owner of the company since 2004. During its time as a Ratos holding, Hägglunds Drives has seen strong growth in both sales and profitability. The company's sales have risen from SEK 892m in 2001 to SEK 1,761m in 2007 with operating profit (EBITA) rising from SEK 75m to SEK 360m in the same period.
Ratos CEO Arne Karlsson: "Focused efforts in recent years to accelerate growth through investment in the sales and marketing organisation, new markets and segments, and expanded aftermarket services as well as extensive product development have laid the foundation for Hägglunds Drives's positive development. Having Bosch as its owner will enable Hägglunds Drives to continue to develop its focus within existing segments as well as within new, attractive segments such as renewable energy production. This will lay the foundation for the company's continued strong growth."
Bosch Rexroth, a subsidiary within the German Robert Bosch GmbH, is one of the world-leading suppliers within drive and control technology. In 2007, Bosch Rexroth posted sales of EUR 5.4 billion and had approximately 33,000 employees.
The sale will generate an exit gain for Ratos of approximately SEK 4,400m. The ultimate exit gain will be affected by the date when this deal is finalised.
The sale of Hägglunds Drives is subject to clearance from the relevant competition authorities.
For further information, please contact: Arne Karlsson, CEO Ratos, +46 8 700 17 00 Per Nordgren, CEO Hägglunds Drives, +46 660 87 001 Clara Bolinder-Lundberg, Head of Corporate Communications Ratos, +46 70 719 84 43
Financial calendar from Ratos: Interim Report January - June 2008 22 August 2008 Interim Report January - September 2008 7 November 2008 Year-End Report 2008 19 February 2009
Ratos is a listed private equity company. The business concept is to maximise shareholder value over time by investing in, developing and divesting primarily unlisted companies. Ratos offers investors a unique investment opportunity. The equity of Ratos's investments is approximately SEK 12 billion and a market capitalisation of approximately SEK 26 billion. Ratos's holdings include AH Industries, Anticimex, Arcus Gruppen, Bisnode, Camfil, Contex, DIAB, EuroMaint, GS-Hydro, Haglöfs, HL Display, HÅG/RH/RBM, Hägglunds Drives, Inwido, Jøtul, Lindab, MCC, Medisize, Superfos and Other holdings.
