Beijer Alma’s subsidiary Lesjöfors completes acquisition in the US

Beijer Alma’s subsidiary Lesjöfors AB has purchased the power spring operations
of Sandvik Materials Technology – a leading manufacturer in the US market. The
company has approximately 60 employees and revenue of about MSEK 100. The
largest customer segment is the industrial and construction sector.
The acquired business, which operates plants in both the US and Mexico, is a
leader in the specialty area of power springs. The company’s principal market is
the NAFTA zone – the free trade area encompassing the US, Canada and Mexico –
which accounts for slightly more than 90 percent of its sales.

“This acquisition marks a milestone for Lesjöfors and Beijer Alma. Lesjöfors has
been undergoing profitable expansion for a number of years, not only in the
Nordic region but also across Europe and Asia. We are now crossing the Atlantic
and further boosting the company’s growth by entering this major market for
springs,” says Bertil Persson, President and CEO of Beijer Alma.


Construction and engineering sector dominates
Most of the company’s manufacturing focuses on custom-designed springs. The
company’s products are used in a range of consumer and industrial products, as
well as in the construction and engineering sector, which represents its largest
customer segment.

“This acquisition has strengthened our presence in the US spring market and will
provide us with the scope for further expansion in North and South America,”
says Kjell-Arne Lindbäck, President and CEO of Lesjöfors AB.

“It has also strengthened our offering in the area of power springs, which will
benefit our companies with operations in Europe and Asia,” he continues. “The
acquisition will also open the door to attractive sales opportunities for
Lesjöfors’s other spring products in the US market.”

The company, whose US operations were established in 1926, has its headquarters
and US plant in Scranton, Pennsylvania. The plant in Nogales, Mexico, was
established in 1989 and currently accounts for about 70 percent of the company’s
manufacturing volume. The company has approximately 60 employees and revenue
about MSEK 100 (MUSD 15). The operations have historically displayed favorable
profitability and a strong business trend. Following the acquisition, Lesjöfors
now has 21 manufacturing units in ten countries.

The transaction was conducted as an asset-transfer acquisition.

Further information:
President and CEO Bertil Persson, Beijer Alma AB, tel: +46 (0)8-506 427 50
President and CEO Kjell-Arne Lindbäck, Lesjöfors AB, tel: +46 (0)70-574 99 94

Beijer Alma AB (publ) is an international industrial group that focuses on
component production and industrial supplies. The Group includes Lesjöfors, one
of Europe’s largest spring manufacturers, Habia Cable, one of Europe’s largest
manufacturers of custom-designed cables and Beijer Tech with strong positions in
industrial supplies in the Nordic region. Beijer Alma is listed on the NASDAQ
OMX Stockholm Mid Cap list.

Lesjöfors is one of Europe’s largest spring manufacturers and has the broadest
product range in the market. During 2013, the company reported sales of SEK 1.7
billion and had 1,400 employees. Lesjöfors has operations in Sweden, Norway,
Finland, Denmark, the UK, Germany, Slovakia, Latvia, Russia, China and Korea.