Alfa Laval acquires Frank Mohn AS, a leader in marine and offshore pumping systems, and strengthens its fluid handling portfolio

Alfa Laval – a world leader in heat transfer, centrifugal separation and fluid
handling – has signed an agreement to acquire Frank Mohn AS, a leading
manufacturer of submerged pumping systems to the marine and offshore markets.
The acquisition, which strengthens Alfa Laval’s fluid handling portfolio by
adding a unique pumping technology, will further reinforce Alfa Laval’s position
as a leading supplier to the marine and offshore oil & gas markets.
Alfa Laval has agreed to acquire Frank Mohn AS (“Frank Mohn”), with the product
brand Framo, for a total cash consideration of NOK 13 billion, on a cash and
debt free basis, from Wimoh AS, a company controlled by the Mohn family. Frank
Mohn, headquartered in Bergen, Norway and with approximately 1,200 employees,
generated sales of NOK 3.4 billion and had an order intake of NOK 6.1 billion in
2013. The operating margin is significantly above the Alfa Laval average. The
acquisition is expected to be EPS accretive as from closing of the transaction.

“Frank Mohn is an excellent company that we have been following closely for
several years. It has highly skilled employees, high quality products and a
market-leading position within segments offering attractive long-term growth
prospects”, says Lars Renström, President and CEO of the Alfa Laval Group. “The
combination of Frank Mohn and Alfa Laval will provide a very attractive offering
of products, systems and services and it will strengthen our leading position as
a provider of critical systems for ships and offshore oil & gas production
units, with unmatched service capabilities.”

Alfa Laval continuously looks for growth opportunities and considers the long
-term growth prospects for marine and offshore oil & gas markets to be very
attractive. Frank Mohn is a leading supplier to these markets by providing
submerged pumping systems, under the product brand Framo.

With the acquisition of Frank Mohn, Alfa Laval also strengthens its fluid
handling portfolio by adding industrial pumping systems to the existing range of
equipment, which is today mainly dedicated to sanitary applications with high
demands on hygiene.

Frank Mohn’s main product in the marine segment is its unique submerged cargo
pumping system, which plays a vital part in maximizing the utilization of
product and chemical tankers. The system enables safe and flexible cargo
handling performance for quicker turnaround time and fewer voyages in ballast.

In the oil & gas segment, Frank Mohn offers packaged pumping systems for
offshore installations including seawater lift, water injection and fire water
pumping systems contributing to safe and efficient operations.

The service organization of Frank Mohn provides technical support during the
installation phase of a project, as well as professional service throughout the
lifetime of the installed systems. The service activities represented slightly
more than 20 percent of the total sales 2013.

“Consolidation and globalization takes place in all industries. We have shown
competitiveness through innovation, quality and a long-term view on customer
relations. Alfa Laval’s commitment and focus on quality products to an
international market is a heritage we share”, says Trond Mohn, Chairman of Frank
Mohn AS. “Our customers and employees have recognized Alfa Laval as a reliable
supplier of heat exchangers and separators for generations.”

Trond Mohn continues: “Alfa Laval is the only company we could see as a
responsible and long-term owner of Frank Mohn AS and I am very happy that we
have reached an agreement. Through Alfa Laval’s industrial platform and global
reach we are confident that Framo will continue to serve demanding customers and
foster its position as a global leader.”

The acquisition of Frank Mohn will be funded by existing credit facilities and a
fully committed bridge facility. Alfa Laval’s net debt/EBITDA ratio on a pro
forma basis (following completion of the acquisition) would be around 2.5x. The
transaction is expected to be EPS accretive as from the closing and synergies
are expected to reach about NOK 120 million annually, gradually realized over a
three year period.

After closing, Alfa Laval intends to include Frank Mohn and the product brand
Framo in the Marine & Diesel division, headed by Peter Leifland, Executive Vice
President, Alfa Laval Group. The company will be kept together and form a new
segment in the Marine & Diesel division, under the same management as today. The
activities in the Bergen area in Norway; the new office and sales & service
facility at Askøy – as well as production facilities at Fusa, Flatøy and
Frekhaug – will become Alfa Laval’s operational centre for marine and offshore
pumping systems. Together with Alfa Laval’s other marine operational centres in
Aalborg, Denmark, and Tumba, Sweden, it will create an even stronger supplier to
the marine and offshore industries.

The closing of the transaction is subject to approval from regulatory
authorities.

Alfa Laval’s acquisition strategy is based on the business concept of constantly
optimizing the performance of our customers’ processes. This means that Alfa
Laval seeks to undertake acquisitions and form alliances that strengthen the
existing key technologies by adding new solutions as well as complementary
products and channels. Over the last five years, Alfa Laval has acquired some 20
companies with total sales, the year prior to the acquisitions, of about SEK 7.5
billion.

Did you know that… IEA expects demand for oil to increase 27 percent between
2012 and 2035, to 101 million barrels a day and that fully two-thirds of that
growth will come from Asia, with China in the lead?

Alfa Laval will host a telephone conference on April 7 at 9:00 a.m. CET

To join the telephone conference - hosted by Alfa Laval’s President and CEO,
Lars Renström, and Thomas Thuresson, CFO - sign up via the link below. Once
registered, you will receive a phone number, a participant pin and a conference
pin. Please dial in 10 minutes prior to the scheduled start of the event.

https://eventreg2.conferencing.com/webportal3/reg.html?Acc=027199&Conf=215534

If you want to listen to the replay, call +44 (0)20 7031 4064 or +46 (0)8 5052
0333, conference code 94 31 64. The replay will be accessible until Friday,
April 11th. After that a recording will be available for download at
www.alfalaval.com/investors. A transcript will also be published on the website,
within a few days.

About Frank Mohn
Frank Mohn, which is based in Bergen, Norway, is a leading manufacturer of
submerged pumping systems. From its beginning in 1938, Frank Mohn has grown into
a worldwide organization with subsidiaries on three continents.

The operating segments include marine pumping, offshore pumping, oil recovery
systems, and parts & service. Frank Mohn’s customers are mainly found in the
shipping and offshore industry. Framo’s hydraulically driven submerged cargo
pumps handles various types of liquid cargo with an efficiency that saves time
for its customers.

In 2013, Frank Mohn employed about 1,200 and posted annual sales of NOK 3.4
billion and an order intake of NOK 6.1 billion.
www.framo.com

About Alfa Laval
Alfa Laval is a leading global provider of specialized products and engineering
solutions based on its key technologies of heat transfer, separation and fluid
handling.

The company’s equipment, systems and services are dedicated to assisting
customers in optimizing the performance of their processes. The solutions help
them to heat, cool, separate and transport products in industries that produce
food and beverages, chemicals and petrochemicals, pharmaceuticals, starch, sugar
and ethanol.

Alfa Laval’s products are also used in power plants, aboard ships, in the
mechanical engineering industry, in the mining industry and for wastewater
treatment, as well as for comfort climate and refrigeration applications.

Alfa Laval’s worldwide organization works closely with customers in nearly 100
countries to help them stay ahead in the global arena.

Alfa Laval is listed on Nasdaq OMX, and, in 2013, posted annual sales of about
SEK 29.9 billion (approx. EUR 3.45 billion). The company has today about 16,300
employees.
www.alfalaval.com

SEB has acted as financial advisor and provided the bridge funding to Alfa
Laval. Furthermore, BA-HR has acted a legal advisor, Golder as environmental
advisor and PWC as accounting and tax advisor.

Saga Corporate Finance has acted as financial advisor, Advokatfirmaet Schjødt as
legal advisor and EY as accounting advisor to Frank Mohn.

For more information, please contact:

Lars Renström         Thomas Thuresson      Peter Torstensson
President and CEO     CFO                   SVP Communications
Alfa Laval AB         Alfa Laval AB         Alfa Laval AB
Tel: +46 46 36 72 00  Tel: +46 46 36 72 40  Tel: +46 46 36 72 31

The information in this press release was submitted for publication on April 7,
2014 at 08.30 (CET).

Forward-looking statements
This press release may contain forward-looking statements. These statements are
not guarantees of future performance and are subject to inherent risks and
uncertainties. Forward-looking statements may be identified by the fact that
they do not relate strictly to historical or current facts and include, without
limitation, words such as “may”, “will”, “expects”, “believes”, “anticipates”,
“plans”, “intends”, “estimates”, “assesses”, “projects”, “targets”, “forecasts”,
“seeks”, “could”, or the negative of such terms, and other variations of such
terms or comparable terminology. Forward-looking statements include, but are not
limited to, statements about the expected future business of Frank Mohn AS
resulting from and following the acquisition. These statements reflect Alfa
Laval’s current expectations, based upon information currently available to Alfa
Laval and are subject to various assumptions, as well as risks and uncertainties
that may be or is outside of Alfa Laval’s control. Actual results could differ
materially from those expressed or implied in such forward-looking statements.
Any such forward-looking statements speak only as of the date on which they are
made and Alfa Laval shall be under no obligation (and expressly disclaims any
such obligation) to update or alter such forward-looking statements whether as a
result of new information, future events or otherwise, except to the extent
legally required.