SOURCE: Atorka Group hf

December 18, 2006 11:54 ET

Promens hf. Acquires Polimoon ASA

REYKJAVIK, ICELAND -- (MARKET WIRE) -- December 18, 2006 -- Promens hf (`Promens`), a subsidiary of Atorka hf., has now waived the following conditions related to the acquisition of Polimoon ASA (`Polimoon`): regulatory, financing, due dilligence and 90% acceptance. The acquistion is scheduled to close on December 28th 2006. At the time of expiration of the extended Offer Period on Friday 15 December 2006, 99.85% of the Shares had accepted the Offer. The price per share is NOK 35,00, representing a total fully diluted equity value of NOK 1.351 million (EUR 166 million). Polimoon's enterprise valuie in the acquisition is around EUR 298 million.

The acquisition is financed by equity and convertible loans underwritten by Atorka and Landsbanki Íslands and debt underwritten by DnB NOR. In addition DnB NOR grants the company a revolving facility to be used for acquisitions.

After the acquisition Promens will become one of the biggest industrial companies in Iceland, with annual proforma turnover of EUR 720 million in 2006, running 60 manufacturing facilities world wide and employing 5.400 employees.

Prior to the acquisition of Polimoon, Promens has been a leading player in manufacturing and product development in rotational molding and is the largest rotational molding group in the world, with expected pro forma turnover of EUR 150 million in 2006, running 20 plants in 10 countries and employing 1.400 employees.

Polimoon was listed on the Oslo Stock Exchange in April 2005 and manufactures wide range of packaging products for customers in consumer, chemical, medical and food industries, as well as components for the automotive and electronic industries. Its key technologies are injection molding, blow molding and thermoforming. Among Polimoons' customers are well known companies such as Johnson & Johnson, L'Oreal, Pfizer, GE, Shell, Volvo and ABB, to name but a few. Polimoon operates 40 plants in seventeen countries in Europe, with a proforma turnover in 2006 of EUR 570 million. The proforma EBITDA in 2006 is expected to be around EUR 57 million. Polimoon has been growing successfully in the past through a buy and build strategy.

"Through the acquisition of Polimoon we will be able to create a leading plastic company and the combined entity will have substantial opportunities for further growth, both in current and new markets. Both companies have a solid track record in terms of growth and we intend to continue on that route. We are impressed by Polimoon's performance, and its management team. By acquiring Polimoon, Promens will grow significantly, which is in line with our corporate strategy", says Promens' CEO Ms. Ragnhildur Geirsdóttir.

Promens intends to continue Polimoon's strategy and Polimoon will be run separately from Promens' rotational molding operation. The combined group will pursue profit improvement initiatives, such as sourcing of raw material and sharing best practices and knowledge within the group. Mr. Arne Vraalsen, Polimoon's CEO will continue to serve as Polimoon's CEO after the acquisition .

"Promens acquisition of Polimoon is very positive for Polimoon and I see great opportunities in working with Promens in further growing the business in a profitable way," says Mr. Vraalsen.

Landsbanki Corporate Finance and ABG Sundal Collier Norge ASA have been acting as financial advisors and Advokatfirmaet Schjødt AS has been acting as legal counsel for Promens.

Promens Promens, which is owned by Icelandic investment company, Atorka Group, is the largest rotational molding plastics group in the world, with expected pro forma turnover of EUR 150 million. Promens is a leading player in manufacturing and product development in rotational molding production. The company runs 20 plants in ten countries in Europe, North America and Asia, and has additional sales offices in Asia and a worldwide network of agents. Promens employs approximately 1,400 people.

www.promens.com

Atorka Atorka is an investment company, listed on the Icelandic Stock Exchange (ICEX) and is included in the ICEX-15 index. Atorka's main focus is to invest in progressive and well-managed companies that operate in growing markets. Atorka's aim is to take such companies to recognizable world leadership and support their growth. Atorka's shareholders are around 5,000.

www.atorka.is

Polimoon Polimoon is one of the leading European producers of products and applications in rigid plastics. The company operates in 17 European countries with 40 production facilities. Polimoon employs approximately 4,000 people, and has been listed on the Oslo Stock Exchange since 2005.

www.polimoon.com

Presenatation of the acqusition will be held in January 2007.

Copyright © Hugin ASA 2006. All rights reserved.

Contact Information

  • For more information, please contact:
    Ms. Ragnhildur Geirsdottir
    CEO
    Promens
    tel. +354 898 5001

    Mr. Magnus Jonsson
    CEO
    Atorka
    tel. +354 840 6240