STOCKHOLM, Sweden, Oct. 17, 2002 (PRIMEZONE) -- 3i (London:III):
- 3i Group plc and Baltickoncernen (the Baltic group) are to restructure the ownership of Alo.
- 3i's ownership holding will increase to 49.9%.
- Alo is a world-leading manufacturer of front loaders, implements and accessory ranges for farm tractors.
- Alo's year-2002 estimate is for sales of approximately SEK 1,250 m, with healthy profitability.
Alongside the Baltic group, 3i has incorporated a new enterprise (Alo Intressenter AB), which is contracted to acquire all Alo's shares. 3i and the Baltic group intend to own over 49% each of this jointly owned entity, with Alo's Board and management holding the remainder. Eventually, the Baltic group's ownership will reduce to 25%. The transaction is conditional on approval from the relevant competition authorities.
Alo develops, manufactures and sells front loaders and implements for farm tractors, and is currently a global market leader with prime brands like Quicke, Trima and Veto. Alo has a global market share of 15% and produces 25,000 front loaders annually. Alo's estimated earnings before financial items in 2002 are SEK 150 m.
Gustav Bard, Managing Director of 3i Sweden, advisor to 3i Group plc, commented: "Alo has posted very robust annual growth of 20% over the last decade. Its management and organisational resources are very skilled, and we are convinced of Alo's substantial growth prospects."
Krister Olsson, Chairman of Balticgruppen AB, added: "Alo is a well-run business with high potential, and in recent years, has made several successful acquisitions in Sweden, Denmark, France, the UK and elsewhere. We think it has bright prospects of further consolidating its position. Meanwhile, now is the obvious time for the Baltic group to hand over the role of Alo's main principal shareholder to 3i."
"Alo has major developmental prospects," added Lars Erik Blom, Investment Manager at 3i Nordic, advisor to 3i Group plc, "in the US and European markets, Alo enjoys a head-start on competitors by virtue of its global leadership."
Olle Pehrsson, Alo AB's Managing Director, concluded, "In 3i, we've secured a partner with a broad multinational contact network, heavy financial muscle and solid trade know-how. All of this offers Alo good opportunities to progress."
Alo was incorporated in 1949, and has 800 staff. It is headquartered in Umea, northern Sweden, where it also has three production facilities. Apart from Umea, Alo has factories in Bergsjo, Sweden, and in Denmark and France. It has sales presences in nine countries worldwide.
Stelio Demark (formerly of ABB) has been appointed Alo's Chairman, while Olle Pehrsson remains Alo's Managing Director.
For more information, please contact: Gustav Bard, Managing Director of 3i Sweden, advisor to 3i Group plc: +46 (0)8 506 10151, +46 (0)70 511 6427
Olle Pehrsson, Managing Director of Alo AB +46 (0)90 170537, +46 (0)70 326 2441
Krister Olsson, Chairman of Balticgruppen AB +46 (0)90 717210, +46 (0)70 557 3710
About 3i Group plc
3i brings capital, knowledge and connections to the creation and development of businesses around the world. It invests in a wide range of opportunities from start-ups to buy-outs and buy-ins, focusing on businesses with high growth potential and strong management.
3i invests in businesses across three continents through local investment teams in Europe, Asia Pacific and the USA. To date, 3i has invested over 14.5 billion Pounds (including co-investment funds). In the 12 months to 31 March 2002, an average of 4.1 million Pounds (including co-investment funds) was invested each working day. In May 2001, 3i acquired Atle AB.
This information was brought to you by Waymaker http://www.waymaker.net
The following files are available for download:
http://www.waymaker.net/bitonline/2002/10/17/20021017BIT00920/wkr0001.doc
http://www.waymaker.net/bitonline/2002/10/17/20021017BIT00920/wkr0002.pdf