Indutrade today signed an agreement to acquire all of the shares in Flintec Group AB. The Flintec Group has annual sales of approximately SEK 275 million and some 1,000 employees, most of whom (approx. 800) are at the Group's two manufacturing units in Sri Lanka. The Group also has sales and design companies in the US and the UK, and sales companies in Sweden and Germany. The company's products are marketed in other parts of the world via well-established distributors.
Flintec manufactures and markets measurement technology products. Customers work in a range of market segments, primarily weighing, automation, medicine, testing and measurement systems, transport and agriculture. Established in 1969, Flintec is distinguished by innovative design, customer-adapted solutions and world-class manufacturing.
The acquisition is the largest to date that Indutrade has made as a listed company. Indutrade's has an annual growth target of 10% over a business cycle and posted growth of 26% in 2007.
"Flintec has a strong position in its market segments and is a good fit in our efforts to increase the share of own brands. The acquisition will also help strengthen our geographic reach in the global market," says Johnny Alvarsson, President and CEO of Indutrade.
Following its entry to the Indutrade Group in July, Flintec will be part of the Special Products business area, which had net sales of SEK 1,322 million in 2007.
After the acquisition, Indutrade will have own brands in measurement technology with annual net sales of approximately SEK 570 million. The acquisition is expected to have a marginally positive impact on Indutrade's earnings per share in 2008.
Stockholm, 2 June 2008
INDUTRADE AB (publ)