New Wave Group acquire the Dahetra group of companies

STOCKHOLM, Sweden, Jan. 14, 2005 (PRIMEZONE) -- New Wave Group AB (publ) has today signed an agreement regarding purchase of all shares in the Danish company Dahetra A/S with its subsidiary Hurricane Purchase A/S which in its turn owns all shares in Dahetra Sweden AB and Dahetra Norway A/S and also 95 % of the shares (with an option to buy the outstanding shares) in Hurricane Textile Printing (Pvt) Ltd in Bangladesh.

The fixed part of the purchase sum is approx. 20 MDKK with an additional purchase sum depending on the acquired group of companies' profit development during 2005 -- 2009. 10 MDKK of the fixed part of the purchase sum is paid through a non-cash issue of new B-shares in New Wave Group for a share price of 125 SEK per share. The Dahetra group of companies shareholders equity is estimated to approx 11 MDKK, which result in a goodwill of about 9 MDKK, based on the initial fixed part of the purchase sum.


The business concept is to, on the one hand, supply it customers with knowledge, solutions and products for profiling and marking with constant high quality, to create competition advantages for its customers and partners in business, and on the other hand to market and sell pre-profiled basic textiles, transfer production and embroidery. The group has today 94 employees, active with sales, administration, design and production. The group has established activities in Skanderborg and Fredrikshavn in Denmark, Gothenburg in Sweden, Sandefjord in Norway and Dhaka in Bangladesh. The groups' turnover was approx. 83 MSEK during 2004 with a loss of approx 650 TSEK.


New Wave Group acquires the Dahetra group of companies with effect from 1 January 2005 and the acquisition is consolidated result wise into New Wave Group from the said date.


New Wave Group expects substantial synergies, among others through the following areas:

The trademark Hurricane in Sweden, Norway and Finland New Wave Group will with Dahetra's low price trademark Hurricane explore a new segment of the market, namely basic textiles to low prices. As New Wave Group has not previously been active within this segment, and since the largest part of Dahetra's turnover is today in Denmark, New Wave Group expect to substantially increase the sales in the other Scandinavian countries. Another advantage is that these products can be supplied with transfer, screen print and embroidery.

Launch of MacOne/Jingham in Denmark The MacOne/Jingham-concept will, under the management of Dahetra, be launched in Denmark as soon as possible. This can later on be followed by other launches of trademarks that are new to the Danish market. This will substantially widen Dahetra's portfolio of products which should give a positive growth in turnover on the Danish market.

Marking of inter alia work wear through transfer printing New Wave Group will offer its customers, of work wear as well as promo wear, complete equipment which will make it possible for them to offer transfer printing to their end customers. Dahetra will offer its production of transfer to these resellers. Also, most of New Wave Group's subsidiaries' warehouse-facilities will be provided with equivalent equipment. It will be possible to stock transfer at Dahetra, at retailers and at New Wave Group's subsidiaries. This will lead to a substantially higher service level for all New Wave Group's subsidiaries' resellers, both within profile and work wear.


The buying done by Dahetra and New Wave Group can be co-ordinated which will lead to synergies through lower buying prices.


The acquisition is estimated to result in a minor, probably negative, effect on the result during 2005 due to large investments in relation to introduction, marketing and co-ordination of the different concepts/trademarks in each country. These costs will be taken immediately. However, New Wave Group expect a positive influence on the result already during 2006.


The acquisition means that New Wave Group has taken another large step towards being a complete supplier by being able to provide both products and marking and there through provide the customers with a more attractive total offer than the competitors do. By also being able to provide marking, the handling will be easier for New Wave Group's customers, as fewer parties are involved, and it will also mean that the customers will have to bind less capital. Since shorter lead times and more flexible marking methods are demanded by the customers, New Wave Group can see a large potential for the services that the acquisition of Dahetra adds to our business. Furthermore, New Wave Group will, through Dahetra's low price concept "Hurricane", become very competitive within the low price segment of the profile market, a segment on which New Wave Group has not previously had a strong position and where a high growth potential is at hand.

For more information about Dahetra and Hurricane, please visit the website

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