Indutrade today signed an agreement to acquire all of the shares in Norwegian Lekang Group, consisting of the companies Lekang Maskin AS in Norway, Filterteknik Sverige AB in Sweden, and Filterteknik A/S in Denmark.
The Lekang Group specialises in products and services, mainly in filtration of fluids, for all types of industrial companies in Scandinavia. In addition to system solutions for filtration and filtration equipment, the companies provide consumables such as filters and products for licence control of industrial equipment. Demand for the companies' products is driven by industrial needs for greater productivity, lower maintenance costs and higher quality, together with environmental considerations.
The Lekang Group was established in 1970 and has had stable, controlled and profitable growth during the past decade. Sales in 2008 amounted to approximately SEK 200 million, and the companies in the Group succeeded in maintaining the same sales volume in 2009. The Group has approximately 60 employees.
"We have had strong development in recent years, but now feel it is time to take the next step in our growth. With Indutrade as our owner, we will obtain the help and support that is needed. Together we have an exciting period ahead of us," comments Egil Lekang, President of Lekang Maskin AS, in Norway.
Filters and filtration technology are an established part of Indutrade's offering. The acquisition strengthens the company's position in filtration – mainly in Norway, and specifically in the marine and offshore industries. Through the Lekang Group, Indutrade will also gain a broader offering and be able to serve more categories of customers in filtration technology.
"The acquisition of the Lekang Group is entirely in line with our strategies. It is a stable, profitable industrial company that is a leader in its niche," comments Johnny Alvarsson, CEO of Indutrade.
Organisationally, the Lekang Group companies will be included in the Special Products business area, which had net sales of SEK 1,877 million in 2009. The acquisition is expected to have a marginally positive impact on Indutrade's earnings per share.
The acquisition is Indutrade's fifth to date this year. Combined annual sales of the acquired companies is estimated at approximately SEK 400 million.
Stockholm, 25 February 2010
INDUTRADE AB (publ)