Perstorp AB - Disposal Agreemt Signed, etc
March 02 2000 - 5:15AM
UK Regulatory
RNS Number:5580G
Perstorp AB
2 March 2000
Perstorp signs agreement regarding sale of Surface Materials division
As part of its continued streamlining, Perstorp has signed an agreement
covering the sale of the Perstorp Surface Materials subgroup to Decorative
Surfaces Holding AB (DSH), an investment company formed by DLJ Merchant
Banking partners (DLJ) and CVC European Equity partners (CVC). These are the
principal owners of Formica Corporation, USA, and Laminex Industries, Inc.,
Australia, both leading companies in decorative surface materials.
The sales price is SEK 1,500 million, including assumed loans, which will
generate a small capital gain. A condition for the agreement is that payment
and takeover occur on March 24. The sale will release funds within Perstorp
that will be used for the amortization of loans and to enable increased
investments.
The operations to be divested had sales of SEK 2 billion in 1999, production
in seven countries and 1,700 employees. Perstorp Surface Materials is a
leading supplier of high-quality surface materials, with decorative laminates
and finished foils as its largest products.
The agreement does not include Perstorp Laminatproduktion AB, which supplies
laminate to Perstorp Flooring, and the intention is to supplement the product
program with laminate products for other applications.
"This transaction will further sharpen Perstorp's focus. We will now be able
to concentrate our resources on chemicals and flooring, areas in which we see
major growth opportunities," comments Ake Fredriksson, Perstorp's President
and Chief Executive Officer. "The agreement also means that Perstorp Surface
Materials will be part of the world's leading producer of surface materials,
with the opportunities this implies for the continued development of its
operations."
Formica Corporation is a leading worldwide manufacturer of decorative surface
materials, with annual sales of USD 585 m, production in 8 countries and
3,700 employees. Laminex Industries Inc., is the leading surface materials
company in Australia and New Zealand.
Decorative Surfaces Holding will enter into a management and service agreement
with Formica Corporation.
Vincent P. Langone, Chairman and CEOP of Formica Corporation says:
"We are looking forward to the opportunity to work with Perstorp Surface
Materials on a worldwide basis. This acquisition represents an attractive
addition to the DLJ/CVC portfolio of building products companies. Perstorp
Surface Materials adds a strong brand name and significant manufacturing and
distribution presence around the world. Their technology, manufacturing
capability and design strength will clearly enhance DLJ/CVC's growth
strategy."
Pro forma accounts showing the Perstorp Group's income statement and balance
sheet for the 1999 fiscal year and based on the assumption that the
transaction was implemented at the end of 1999 are presented below.
Morgan Stanley Dean Witter acted as the exclusive financial advisor to
Perstorp AB in conjunction with the sale.
Questions can be directed to:
Rolf Rahmberg, Vice President Corporate Communications + 46 435 381 59
Annette Lidman, Vice President Investor Relations +46 435 376 60
March 2, 2000
Perstorp AB
Corporate Communications
Pro forma
The following figures are reported in accordance with the listing agreement
with the OM Stockholm Exchange. The table shows the Perstorp Group's income
statement and balance sheet for 1999 based on the assumption that the
transaction was implemented at year-end 1999. The reported figures also
exclude the Perbio Science Group which was spun off during 1999 ("Perstorp
Life Science").
Earnings Group 1999 Remaining Perstorp Perstorp Total
SEK m operations Surface Life
Materials Science
(Note 1)
Net sales 7 484 2 003 865 10 352
Cost of goods sold -5 294 -1 583 -480 -7 357
Gross earnings 2 190 420 385 2 995
Sales, administration and - 1 674 -339 -268 -2 281
R&D costs
Items affecting -71 0 -15 -86
comparability
Other operating revenues -1 13 -7 5
and expenses
Result from 18 0 0 18
participation in
associated companies
Operating earnings (Note 2) 462 94 95 651
Margin, % 6.2 4.7 11.0 6.3
Operating earnings before 859 172 131 1 162
depr. (Note 2)
Margin, % 11.5 8.6 15.1 11.2
Balance Sheet Group Remaining Perstorp Group Total
1999-12-31 operations Surface adjust-
(Note 3) Materials ments
(Note 1)
SEK m
Long-term operating 3 377 570 3 947
assets
Long-term financial 314 2 316
assets
Inventories 976 416 5 1 387
Current operating 1 833 519 40 2 312
receivables
Current financial assets 150 57 207
Total assets 6 650 1 564 45 8 169
Shareholders' equity 3 781 543 548 3 776
Minority interests 52 4 56
Provisions 502 24 526
Long-term financial 271 0 271
liabilities
Current operating 1 507 335 40 1 802
liabilities
Current financial 537 658 -543 1 738
liabilities
Total liabilities and 6 650 1 564 45 8 169
shareholders' equity
1) Business units sold
2) Operating earnings and operating earnings before depreciation include
Corporate costs in the amount of SEK 13 m for Perstorp Surface Materials
and SEK 5 m for Perbio Science.
3) Perbio Science was not part of the Group at year-end
END
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