Indutrade makes largest acquisition since stock exchange listing
Today, Indutrade has signed an agreement to purchase all the shares in the
Swedish company Meson AB, a supplier of valves and couplings mainly to shipyards
and shipping companies.
The Meson Group was established in 1997 and has consistently experienced strong
growth. It is estimated that the company's market share is currently just under
5% with the potential to increase. The majority of the company's products are
sold on the European and Chinese markets, which together account for about 90%
of the company's sales. Turnover in 2009 was just under SEK 500 million with an
operating profit well in excess of the Indutrade Group's target of an EBITA of
10%.
The Meson Group supplies valves and couplings to the international shipbuilding
and shipping industries as well as to refineries and the mining industry. With
short lead times, experienced personnel and high-quality products, the company
has succeeded in creating a strong brand in the industry and today Meson is a
well-established name in the market. The Meson Group's products satisfy the
exacting demands made by classification societies. Demand for the company's
products comes from newbuilding projects and the after market in the shipping
industry. The company's product catalogue is very well known among chief
engineers all over the world and is an important link to its customers.
“In recent years, we have invested a lot of time in creating the best possible
conditions for the Meson Group's future development. With Indutrade, we will
have an owner with the long-term approach and industrial competence we have been
looking for”, says Bengt-Olof Wesslén, the principal owner of the company.
Today, the Meson Group has about 50 employees at its offices in Sweden, Denmark,
Norway, Spain, Rumania, India, Dubai, Shanghai and Singapore. All key personnel
will continue to work in the group after the acquisition. A new managing
director has been recruited and will take up his duties in September.
“The acquisition of the Meson Group is an exciting step in an expansive
industry. Initially, we will focus on securing Meson's good level of
profitability and then we will see how we can expand the company further”, says
Johnny Alvarsson, President & CEO, Indutrade.
Organisationally, the Meson Group will be part of Indutrade's Flow Technology
business area, which posted net sales of SEK 1,689 million in 2009. The addition
of the Meson Group will strengthen the business area's position in the marine
industry market, which is in part a new market for Indutrade.
The acquisition is expected to add about SEK 1 to Indutrade's profit per share.
Combined annual sales of the companies acquired during the year are estimated to
be in the region of SEK 970 million.
Stockholm, 5 May 2010
INDUTRADE AB (publ)
For further information, please contact:
Johnny Alvarsson, President and CEO, phone +46 70 589 17 95.
About Indutrade
Indutrade markets and sells components, systems and services with a high-tech
content within selected niches. Indutrade's business is distinguished by:
• High-tech products for recurring needs
• Growth through a structured and tried-and-tested acquisition strategy
• A decentralised organisation characterised by an entrepreneurial spirit
The Group is structured into four business areas: Engineering & Equipment, Flow
Technology, Industrial Components and Special Products. Indutrade's sales
totalled SEK 6 271 million in 2009, generating operating income of SEK 594
million before depreciation of intangible assets. Indutrade is listed on Nasdaq
OMX Stockholm.
