Rapala VMC Corporation
Stock Exchange Release
February 10, 2012 at 10.45 a.m.
Rapala has concluded three major strategic initiatives relating to ice fishing
business: Acquisition of the assets of Strike Master Corporation in the United
States, acquisition of Swedish Mora ICE brand and entering into an exclusive
supply agreement with Mora of Sweden AB as well as entering into an exclusive
supply agreement with Marcum Electronics in the United States
Rapala VMC Corporation ("Rapala") has acquired the assets, including Mora
trademark in North America, of Minnesota based Strike Master Corporation
("Strike Master"), the leading supplier of Ice Augers in the US. In perfect
concert Rapala acquired the Mora ICE brand, which is Europe's leading and
premium brand of ice augers and auger cutting blades, together with all
intellectual property rights relating to the Mora ICE-products, from Mora of
Sweden AB having its offices in Mora, Sweden. Rapala and Mora concluded also
exclusive supply agreements for supply of ice augers and auger cutting blades.
Already earlier Normark Corporation, Rapala's US distribution company concluded
an exclusive supply agreement with Marcum Electronics Corporation having its
offices in Minnesota, USA. Marcum Electronics is known as a premier supplier of
ice fishing electronics such as under water cameras and fish finders used on
ice.
These strategic initiatives will give Rapala the global leadership position in
the ice fishing category. Rapala is well equipped to exploit this position as it
is having strong distribution companies in all main arctic markets: US, Canada,
Russia, East European and Nordic countries, Japan and China. The total
acquisition price of these initiatives is some 7 MEUR.
The Strike Master brand is very well known in the US already for more than 50
years. The Mora and Mora ICE brands are well known in the world, and especially
in Europe it has been the leading brand the last 50 years. The combination of
these strategic initiatives positions Rapala as the overall leader in the ice
fishing category with a product lineup that now includes lures, lines and
accessories, motor and hand ice drills, shelters, fishing electronics and more
to come.
"Rapala has already for a long time been one of the global leading companies in
the 'soft water' side of sport fishing. Now we have the ability to reach anglers
during all seasons. Also from a seasonal point of view these strategic
initiatives fit perfectly into Rapala's distribution network as it means more
work for our distribution companies during the winter season rounding our
business and it is directly in line with our core competencies. These
acquisitions are a great addition to the Rapala family of premium brands," said
Jorma Kasslin, President and CEO of the Rapala VMC Group.
"The acquisitions of StrikeMaster and MORA ICE form a perfect marriage of two
brands that have and continue to set the standard for premium products within
the fishing industry. We are thrilled that Strike Master will be joining the
Rapala family of brands," said Randy Havel, Executive Vice President of
StrikeMaster Corporation.
"Mora of Sweden has very long traditions in ice auger manufacturing under the
famous Mora and Mora ICE brands. To secure its position as a premium ice auger
and cutting blade manufacturer and supplier, Mora of Sweden has entered into a
strategic partnership with Rapala. This strategic partnership will secure that
Mora ICE brand will continue to set the standard for premium products within the
ice fishing industry. We are excited to be joining the Rapala family of brands
and continuing to provide ice fishing anglers with the most advanced products on
the market," said Fredrik Skarp, Managing director of Mora of Sweden AB.
In 1946 StrikeMaster was the first to introduce the world-class MORA hand auger
to North America. Since then, StrikeMaster has introduced an array of stand-out-
of-the-crowd ice augers, including a new generation of electric ice augers. Most
recently, the company introduced the Strike-Lite ice auger equipped with a
patented composite cutting crown made by Mora of Sweden, which is the first
composite ice auger powered by an environmentally friendly four-stroke engine.
Mora of Sweden AB is a merger between two classic knife companies from Mora,
Sweden - KJ Eriksson and Frost's Knife factory - founded in 1912 and 1891
respectively. By the merger in 2005 and changing the name to Mora of Sweden, the
already existing strong association was strengthened nationally and
internationally. Mora of Sweden supplies professionals with premium quality
cutting tools as knives, ice augers and ice auger cutting blades.
Rapala aims to expand its sales in ice fishing category in the next few years to
some 20-30 MEUR and to gain a significant market share of the global ice fishing
business. In 2011, Rapala's sales in the ice fishing category were some 7 MEUR.
These transactions are expected to be completed and closed before June 1, 2012.
These transactions are expected to increase Rapala's 2012 net sales some 10 MEUR
and also improve Rapala's profitability.
RAPALA VMC CORPORATION
Jorma Kasslin
Chief Executive Officer
For further information:
Jorma Kasslin, Chief Executive Officer, tel. +358 9 7562 540
Jussi Ristimäki, Chief Financial Officer, tel. +358 9 7562 540
Olli Aho, Investor Relations, tel. +358 9 7562 540
For further information in internet, visit:
Rapalaworld.com, Facebook.com/Rapala
Strikemaster.com, Facebook.com/strikemastericeaugers
Moraofsweden.se, Facebook.com/MoraIce
Marcumtech.com, Facebook.com/marcumtech
Distribution: NASDAQ OMX Helsinki and main media
Rapala VMC Corporation (Rapala) is a leading fishing tackle company and the
global market leader in fishing lures, treble hooks and fishing related knives
and tools. The Group also has a strong global position in other fishing
categories and it is one of the leading distributors of outdoor, hunting and
winter sport products in the Nordic countries. The Group has the largest
distribution network in the industry. The main manufacturing facilities are
located in Finland, France, Estonia, Russia, China, Indonesia and the UK. The
Group brand portfolio includes the leading brand in the industry, Rapala, and
other global brands like VMC, Sufix, Storm, Blue Fox, Luhr Jensen, Williamson,
Dynamite Baits, Marttiini and Peltonen. The Group, with net sales of EUR 279
million in 2011, employs some 2 000 people in 37 countries. Rapala's share is
listed and traded on the NASDAQ OMX Helsinki stock exchange since 1998.
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