STOCKHOLM, Sweden, Nov. 7, 2003 (PRIMEZONE) -- Today, New Wave Group has made an agreement with Swedish Match regarding an acquisition of its distribution of promo wear. Swedish Match has since 1998, as a wholesaler, been distributing promo wear -- under New Wave Group's trademarks James Harvest Sportswear and Printer Active Wear -- on eight different markets (Benelux, Germany, Spain, France, Portugal, United Kingdom, Austria and Switzerland). New Wave Group has, until now, conducted distribution of promo wear under the above mentioned trademarks in Sweden, Finland and Norway through wholly-owned subsidiaries. Through the acquisition of Swedish Match's distribution of promo wear, all distribution of the trademarks will be done through the New Wave group of companies, except from in Denmark where the distribution is done through another external distributor.
In the acquisition is included also the distribution of promo wear under the trademark Squeeze, which mainly is distributed in Benelux.
The business which New Wave Group acquires had during 2002 a turnover of approx. 150 million SEK and the number of employees is approx. 50. The distribution is logistically handled from a central warehouse in Belgium.
The acquired business will be taken over by New Wave Group on 1 January 2004.
The acquisition will, to a certain extent, have a negative influence on the group's result during the fourth quarter 2003 because of the costs for the transaction and preparation. Also during the first quarter 2004, the acquisition will have a negative influence on the result because of investments in the stock building-up in Spain and Switzerland, introduction of supplementary product groups to the acquired business, etc., while the influence on the group's result thereafter is expected to be positive.
The acquisition will not result in any goodwill for New Wave Group.
The acquisition is strategically of great importance to New Wave Group, since it will mean full control over the distribution of promo wear under two of New Wave Group's most important and major trademarks in the business area of promo wear. Moreover, New Wave Group will through the acquisition further strengthen its position within the business area of promo wear in South and Central Europe.
Sko Team AB
Sko Team, which is a wholly-owned subsidiary, has suffered extensive damages because of a fire in a adjacent warehouse, resulting in total destruction of Sko Team's stock. This will have a negative influence on the group's turnover during the fourth quarter 2003. The stock and business in question are insured at the full value and the damages will therefore not have any influence on the result.
Ytterby on 7 November 2003
New Wave Group AB (publ) Goran Harstedt dCEO For more information, please contact: Torsten Jansson CEO, New Wave Group Tel: +46 (0)708-99 80 50, +46 (0)303- 24 65 01 Goran Harstedt dCEO, New Wave Group Tel: +46 (0)708-99 80 17, +46 (0)303- 24 65 02
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