Panostaja Oyj Stock Exchange Bulletin, 13th April 2007
PANOSTAJA ACQUIRES KL-VARAOSAT
Panostaja group closed a deal today to acquire the entire share capital of the
KL-Varaosat group of companies, specialising in the supply of original
Mercedes-Benz and BMW car spare parts, from Mr. Kari Lindfors. The KL-Varaosat
companies will be formed into a new business area dealing with supply of
original car spare parts for Panostaja Oyj.
The KL-Varaosat companies hold a strong market position in terms of import,
wholesale and retail of original Mercedes-Benz and BMW car spare parts and
equipment with a customer base comprising repair shops, retailers and private
consumers.
The pro forma turnover of KL-Varaosat was around EUR 5.9 million in 2006. The
company, that was founded in 1979 and employs 24 people, has an AAA credit
rating and its profitability has remained good for a long time. The companies
include KL-Varaosat Kari Lindfors Oy, Jyväskylän KL-Varaosat Oy and Rovaniemen
KL-Varaosat Oy and have sites in Tampere, Jyväskylä and Rovaniemi, as well as 44
retailers and an on-line shop.
The purchase price for the KL-Varaosat companies was about EUR 5.1 million and
300,000 of Panostaja Oyj's new Class B shares with a total purchase price
amounting to about EUR 5.5 million. Additionally, the seller is entitled to a
maximum conditional additional purchase price of about EUR 1.4 million. As part
of the deal, the seller acquired the properties used by the companies in Tampere
and Jyväskylä at market value.
- The acquisition provides Panostaja with an expert in original German high-end
brand spare parts and an efficient marketing organisation around which the new
business area will be formed, says Olli Halmevuo, CEO of Panostaja Oyj.
The amount of used Mercedes-Benz and BMW cars has increased significantly in
Finland due to changes in vehicle taxation and Finland thus now has a remarkable
number of cars no longer covered by repairs under warranty.
- Panostaja wants to exploit the KL-Varaosat companies' particularly strong
position in this market, says Olli Halmevuo. The aim is to increase the number
of sites and retailers and sales of other German spare parts brands may even be
launched.
The seller and founding partner of the company, Mr. Kari Lindfors, will continue
as Managing Director. According to Lindfors, the company had grown to the point
where additional resources were needed.
- Panostaja has the knowledge, the power as well as the will to develop the
company further. I believe in the company's growth opportunities within its
special field in the future too, says Lindfors.
The turnover and operating profit of the KL-Varaosat companies in the financial
year 1st Jan.-31st Dec. 2006 were as follows (FAS):
(KL1 = KL-Varaosat Kari Lindfors Oy, KL2 = Jyväskylän KL-Varaosat Oy, KL3 =
Rovaniemen KL-Varaosat Oy)
(EUR 1,000) KL1 KL2 KL3
Turnover 4.859 1.856 758
Operating profit 720 206 59
The balance sheets read as follows:
(EUR 1,000) KL1 KL2 KL3
Non-current assets 531 4 4
Stocks 813 352 169
Receivables 514 66 28
Financial assets 1,901 557 44
Total 3,760 979 245
Shareholders' equity 3,445 816 162
Creditors 315 163 83
Total 3,760 979 245
Due to the IFRS recording system, the trade is only expected to have a minimal
effect on the current year's net profit, equity per share and earnings per share
of Panostaja group. The trade has no significant effect on the equity ratio of
the group.
Panostaja Oyj
Olli Halmevuo
CEO
For further information, please contact Mr. Olli Halmevuo, CEO, tel. +358 (0)3
263 4300 or +358 40 545 3767.
Panostaja Oyj is a public limited company focusing on investment activities. The
Group invests in Finnish small and medium-sized enterprises operating in
traditional industries. Investments are mostly carried out through acquisitions.
Panostaja Group invests business resources and strategic know-how in companies
with the aim of developing the target company into a strong player in its field
at which point it will continue operations as an independent growth company.
Panostaja group's net turnover in 2006 was EUR 57.8 million. At present, the
group operates in seven business areas.