G & L Beijer AB has signed a letter of intent to divest its Beijer Tech business area to Beijer Alma. G & L Beijer will receive a consideration consisting of 2.7 million shares in Beijer Alma and a cash portion of SEK 39M. The value of the shares on 12 February amounted to SEK 278M. As a result of the deal, G & L Beijer will report a tax-free capital gain of approximately SEK 120M.
“Through the transaction with Beijer Alma, G & L Beijer is taking a further step in its strategic development of the company. The divestment of Beijer Tech is a move forward in the consolidation of G & L Beijer towards the strongly growing operation within G & L Beijer’s refrigeration wholesale business. We will now be able to concentrate our focus on investing our resources in developing Beijer Ref into a global operator within the refrigeration sector,” says Joen Magnusson, Managing Director and CEO of G & L Beijer.
Beijer Tech reported sales of SEK 505M in 2009 and has 180 employees. Beijer Tech, which has been included as a separate business area in G & L Beijer, carries out an extensive operation within technology trading in the Nordic markets. Beijer Tech has six product areas – Surface Treatment, Foundry, Steelworks & Smelters, Fluid Technology, Industrial Rubber and Services. Beijer Alma, which is listed on the NASDAQ OMX Stockholm Exchange, is an international industrial group which focuses on manufacturing components.
“As a result of the transaction, G & L Beijer becomes the second largest owner in Beijer Alma from a capital viewpoint, with approximately nine per cent of the capital. In our opinion, Beijer Alma will be an excellent environment for the continued development of Beijer Tech’s technology trading and we will monitor the development closely,” says Joen Magnusson.
The transaction is made on a debt-free basis and G & L Beijer will further strengthen its financial position. Financial assets amounting to SEK 317M will be added to the G & L Beijer Group and its net debt will decrease. The transaction is expected to be completed during March 2010.
Malmö, 15 February 2010
G & L Beijer AB (publ)
For further information, please contact:
Joen Magnusson, Managing Director
Telephone: +46 40-35 89 00
Mobile: +46 709-26 50 91