Alfa Laval acquires Aalborg Industries, a leading specialized equipment company

Alfa Laval acquires Aalborg Industries, a leading specialized equipment
company

Alfa Laval - a world leader in heat transfer, centrifugal separation and
fluid handling - has signed an agreement to acquire Aalborg Industries
Holding A/S for a total cash consideration of SEK 5.0 billion, on an
enterprise value basis, from Altor 2003 Fund, LD Equity and the
Company's management. Aalborg Industries has some 2,600 employees and is
expected to generate sales of about SEK 3.3 billion in 2010. The
acquisition will be accretive to EPS from 2011. The closing of the
transaction is subject to clearance from regulatory authorities.

Headquartered in Aalborg, Denmark, the company is a leading provider of
critical products, systems and service solutions, today mainly to the
marine and off-shore markets, but it also has an increasing exposure to
the power industry as well as to other industrial end markets. Its
offering includes boiler systems, thermal fluid systems, waste heat
recovery systems and inert gas systems. The company complements and
further strengthens Alfa Laval's leading global position, by adding a
strong product offering that focuses on energy efficiency. As a result,
meaningful top and bottom line synergies are expected to be derived from
this combination.
Alfa Laval has significant and long-standing expertise in successfully
addressing a number of industries, including the marine and off-shore
markets, and can provide an attractive platform to continue Aalborg
Industries successful development, for instance in applications such as
exhaust gas cleaning.
“Aalborg Industries is an excellent fit and I'm very pleased to welcome
a strong and well-run company into Alfa Laval”, says Lars Renström,
President and CEO of the Alfa Laval Group. “Aalborg Industries
complements our offering of energy-efficient and environmental
solutions. It represents a significant business opportunity as it not
only supports the development of our offering to the marine and
off-shore markets but also means we can introduce their product offering
to new industrial end markets and customers.”
With the acquisition of Aalborg Industries, Alfa Laval will further
strengthen its offer in heat transfer. It will add market-leading
positions in attractive market segments, including boilers and thermal
fluid systems, as well as inert gas systems, with significant barriers
to entry. These include extensive certification processes, a strong
innovation track record and a global service network. The company's
strong manufacturing and engineering presence in fast-growing markets
such as China, Vietnam and Brazil, as well as the aftermarket potential
generated by a large installed base, are highly attractive attributes.
Alfa Laval's acquisition strategy is based on the concept of constantly
optimising the performance of our customers' processes. This means that
Alfa Laval seeks to undertake acquisitions and alliances that strengthen
the existing key technologies by adding new solutions as well as
complementary products and distribution channels. Over the last five
years, Alfa Laval has acquired some 28 companies with total sales, at
the time of the acquisitions, of about SEK 5 billion.
Did you know that… Aalborg Industries' exhaust gas cleaning solution has
in testing been able to remove nearly 100% of the sulphur and up to 80%
of the particles?
Conference call today at 10.00 CET, for further information
For further information about the acquisition Alfa Laval arranges a
conference call today, Tuesday, December 21, 10.00 CET, with CEO Lars
Renström and CFO Thomas Thuresson. Please dial-in a few minutes in
advance to support the process.
To participate in the conference call, please call +44 207 162 0077 or
+46 8 5052 0110, the conference id is 884056.
The conference call will be available as a replay, please call +44 207
031 4064 or    +46 8 5052 0333, access code 884056.
About Aalborg Industries
Aalborg Industries is the world's leading manufacturer and supplier of
marine boiler systems as well as a major provider of inert gas systems,
thermal fluid systems, and shell & tube heat exchangers.
In recent decades, Aalborg Industries has acquired several leading
marine and industrial equipment companies. During this time, and partly
as a result of the acquisition track record, production, engineering and
after sales services have been developed in strategically important and
faster-growing economies such as China, Vietnam and Brazil. This has
contributed not only to a more cost-efficient supply chain, but even
more importantly, access to critical markets where local presence is
key, and the Company is able to provide quick turnaround services to
customers worldwide.
In 2009, Aalborg Industries reported revenues of DKK 2.8 billion (SEK
3.9 billion) and EBITA of DKK 452 million (SEK 645 million), which
represents an EBITA-margin of 16.4%, well in line with Alfa Laval's 15%
target. Profit margin is expected to end on about the same level also in
2010.
www.aalborg-industries.com (http://www.aalborg-industries.com/)
About Alfa Laval
Alfa Laval is a leading global provider of products and solutions for
heat transfer, separation and fluid handling.
The company's key products - heat exchangers, separators, pumps and
valves - currently play a vital role in areas that are crucial for
society, such as energy, the environment and food. Alfa Laval's products
are used in the manufacturing of food, chemicals, pharmaceuticals,
starch, sugar and ethanol. They are also used in power plants, aboard
ships, in the mechanical engineering industry, in the mining industry
and in the refinery industry, and for wastewater treatment as well as
for creating a comfortable indoor climate.
Alfa Laval sells it products in around 100 countries and has its own
sales organization in over half of these countries. Alfa Laval currently
has approximately 12,000 employees.
Alfa Laval's turnover amounted to approximately SEK 26 billion in 2009
and the operating profit amounted to approximately SEK 4.6 billion. Alfa
Laval has a market value of approximately SEK 57 billion and is listed
on NASDAQ OMX Stockholm, Large Cap.
www.alfalaval.com (http://www.alfalaval.com/)
In connection with this transaction, Morgan Stanley has acted as
exclusive financial advisor to Alfa Laval. Furthermore, Eversheds
Södermark has acted as legal advisor and E&Y as accounting and tax
advisor.
For more information, please contact:
Lars Renström
President and CEO
Alfa Laval AB
Tel: +46 46 36 72 00
Thomas Thuresson
CFO
Alfa Laval AB
Tel: +46 46 36 72 40
Peter Torstensson
SVP Communications
Alfa Laval AB
Tel: +46 46 36 72 31
Mobile: +46 709 33 72 31
The information in this press release was submitted for publication on
December 21, 2010 at 08.30 (CET).