STOCKHOLM, Sweden, Jan. 14, 2004 (PRIMEZONE) -- Opcon AB has acquired Svenska Rotor Maskiner AB (SRM) and Lysholm Technologies AB (LT). The purchase price is 1,450,000 newly issued shares in Opcon AB and SEK 5 million in cash. There is also an additional purchase price that depends on the financial results for the past year. Opcon took possession on 31 December 2003. The companies had sales of around SEK 65 million and reported an operating profit of around SEK 5 million in 2002. Increased sales and profits are expected for 2003.
"With this acquisition we have secured important strategic resources that will influence Opcon's short-term and long-term profitability and development," commented Sven G. Oskarsson, CEO of Opcon.
SRM has invented, developed and licensed screw compressors and now has over 70 active patents and 35 licence holders such as Carrier, Trane, Mitsubishi and York using the product for various industrial applications. SRM had sales turnover of SEK 46 million in 2002 and made an operating profit of SEK 2.4 million. Similar results are forecast for 2003. The company recently received a large design assignment that will be followed by a production order. The design order is worth SEK 10 million.
Opcon's strategic aim with the purchase is, among other things, to safeguard intellectual property rights and globally advanced competence for the continued development and manufacturing of complete air systems for fuel cells and combustion engines. Opcon Autorotor AB (OA), a subsidiary of Opcon AB, is involved in several important development projects within the fuel cell sector. These projects rely partly on private financing and partly (50%) on financing from the Swedish Energy Authority and the EU's Sixth Framework Agreement.
Opcon's customers in the fuel cell sector are currently reorganising their purchasing structures ahead of series production. Opcon's continuing involvement in the fuel cell sector depends on being able to offer customers a complete air system comprising frequency converter, electric motor, compressor and heat exchanger. Opcon has developed, or is in the process of developing, all the products necessary for an air system in order to provide an optimum package.
Lysholm Technologies AB (LT) is a sister company of SRM. LT had sales turnover in 2002 of SEK 20.7 million and an operating profit of SEK 2.5 million. The company forecasts that it will double sales turnover and operating profit in 2003. LT competes with the Opcon subsidiary, Opcon Autorotor, primarily on the US aftersales market for compressors used in combustion engines. The acquisition will give Opcon considerable synergies in product development, marketing and manufacturing. Future rationalisation of the product ranges of both companies will also generate cost savings.
Both Opcon Autorotor and Lysholm Technologies have started series production of compressors for both fuel cells and combustion engines. The acquisition gives Opcon an immediate increase in advanced capacity in order to complete these projects. LT will commence commercial deliveries of compressors to OEM customers in January 2004. The volume of this business is expected to reach SEK 15 million in 2004. LT has also signed an agreement with a German company concerning sales of compressors on the European aftermarket. The value of this order is in the range of SEK 20-30 million. This will give the companies further opportunity to rationalise manufacturing and purchasing.
Another Opcon subsidiary, Laminova (LA), holds a patent for its heat exchanger and the acquisition of LT will also provide an opportunity to use this heat exchanger as an intercooler in screw compressor applications for fuel cell and combustion engines in the auto sector.
Both SRM , LT and OA are based in Nacka, LA in Sollentuna outside Stockholm.
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For further information, please contact: Sven G. Oskarsson, CEO, Opcon AB, tel +46 532 611 30, mobile +46 70 625 81 21. Goran Falkenstrom, CFO and deputy CEO of Opcon, tel +46 532 611 22, mobile +46 70 330 05 02.
website: www.opconab.com
Opcon's business concept is to develop, manufacture and market systems and products that help to generate clean and environment-friendly power. Opcon AB had sales turnover in 2002 of SEK 283 million. The Opcon Group comprises SEM AB, REAC AB, Opcon Autorotor AB, Laminova AB and Opcon Inc. These companies employ around 280 people in Amal, Nacka, Eskilstuna, Sollentuna, Sweden, and in the US. The Group manufactures ignition systems, engine management systems, electro- mechanical devices, screw compressors and heat exchangers. The Group's customers are mainly in the auto, small engine and engineering industries. Opcon AB is listed on the O-list of Stockholmsborsen.
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