BORAS, Sweden, June 4, 2002 (PRIMEZONE) -- Today, New Wave Group has made a Letter of Intent with the founder of the Lensen Group, Mr. Albert Lensen, regarding an acquisition of Lensen Beheer B.V. and its subsidiaries, together with the management. The intended acquisition contents the Group's operations within the promotional and trading business areas and does not include the stationery activities.
New Wave Group aims at becoming the owner of shares corresponding to 75% of the capital and votes in Lensen Beheer B.V. and the remaining shares will be owned by two of the company's managers, with a call option right for New Wave Group to acquire these remaining shares after the end of the year 2005 for a purchase price based on result.
LENSEN GROUP's activities
The activities of the Lensen Group concentrate on selling and production of a wide range of promotional articles under the brands Toppoint and M- Pen. Lensen is in a leading position in the Benelux and has a strong position in the markets in Germany, France, Great Britain, Ireland and others. The trading business contents household and promotional articles imported from the Far East. The Group's turnover in these area's is estimated to be approximately 250 million SEK in the year 2002. At the moment 170 persons are employed, most of them in the Netherlands.
Sales take place from offices in the Netherlands, Germany and Hong Kong. The product areas are, among others, writing instruments, ceramics, diaries, lighters, key-rings, in a total range of some 1,400 articles as well as special custom-made concepts. The production contents printing, decoration, assembling and plastic injection mostly in the plants in Bergentheim and Hoogeveen.
At the time of the acquisition Lensen Beheer BV will have seven subsidiaries, all of which are active in the Promotional market.
Promotional:
Lensen Toppoint B.V., which is manufacturing and supplying a total range of writing instruments and gift items suitable for printing. With the brand Toppoint, the company is a leading supplier in Benelux and has little sales within the Nordic countries, which make up New Wave Group's strongest markets.
Merlinex Pen B.V, which is an important supplier of top quality (custom- made) pens, specialized in printing pens in any color under the brand M- Pen.
Topline Keramiek B.V., which is customizing a wide selection of ceramic articles with logos and text. The company offers advanced printing and product-firing techniques.
Breplast Kunststoffspritzguss GmbH, which is the plastic injection company responsible for producing many of the plastic articles within the Toppoint-collection.
Stylex Promotion GmbH, which represents the Group in Germany, Austria, Switzerland and Eastern Europe.
Trading:
Totemco B.V., which is situated in Amsterdam, is importing and exporting gifts, household goods, Christmas and Eastern articles and promotional products according to clients specific instructions. The company sells to the Benelux countries, France and Germany.
Stately Trading Ltd, which is situated in Hong Kong, has its clients in Asian and European markets as well as working for the Group in purchasing and shipping.
All companies only sell via distributors in all markets.
EFFECTS ON THE RESULT
The acquisition is expected to have low effect on the result during 2002 and 2003, when several investments in the market will be made.
DAY OF POSSESSION
New Wave Group expects to take over the company from 1 July 2002, the day as per which the company will be consolidated.
Synergies
New Wave Group expects great synergies within the sales, marketing and distribution areas in the future. These synergies will, however, call for investments in the market during the first year.
The Benelux countries: The acquired companies are in extremely strong positions in the Benelux countries, within their product groups, which might be compared to New Wave Group's position within promo wear in the Swedish market. Sales and marketing, among other things, will in the Benelux countries be coordinated with New Wave Group's other operations within the Promotional business area in the Benelux countries (New Wave Sportswear B.V.), which is expected to lead to a great increase of the promotion sales. New Wave Group also intends to launch other trademarks and promotional concepts, among other things from New Wave Group's existing range, in the Benelux countries, via or together with Toppoint in the following couple of years. Thereby, the Benelux countries may turn into New Wave Group's second largest market, with Sweden being the largest, as early as this year.
Germany: Similar effects and synergies as in the Benelux countries accounted for above, but of slightly smaller proportions.
Scandinavia: Toppoint will immediately after the acquisition be established in Sweden, Norway and Finland in cooperation with New Wave Group. New Wave Group expects to be able to increase Toppoint's sales in the markets mentioned above, thanks to an extensive network of distributors in these countries.
Other markets: Lensen Group and New Wave Group will cooperate where-ever possible in sales and purchase.
Strategic Perspectives
New Wave Group takes another step towards being the leading company within the so-called promotional hard gifts area. Together with Sagaform's and D&J's ranges as well as existing ranges of bags and other products from Clique, Grizzly and James Harvest Sportswear among other trademarks, the Toppoint ranges will make New Wave Group one of Europe's leading and best suppliers in the gifts area. New Wave Group will continue investing in the gifts area and the so-called promotional hard gifts. New Wave Group judges that a substantial organic growth within these areas will be reached after the intended acquisition.
More information about the financial content and conditions of the acquisition will be given when the acquisition is complete.
Boras on 4 June 2002
New Wave Group AB (publ) Torsten Jansson Goran Harstedt
For more information, please contact: Torsten Jansson, CEO, New Wave Group Tel: +46 (0)708 99 80 50, +46 (0)33 2258 55 Goran Harstedt dCEO, New Wave Group Tel: +46 (0)708 99 80 17, +46 (0)33 2258 63
New Wave Group in brief
New Wave is a promotional and retailing company that concentrates on establishing, acquiring and developing trademarks, mainly within the promo wear, leisurewear and gift sector. New Wave operates within two business areas, in the Corporate Promotional area through sales to independent promotion companies, as well as in the Retailing business area via retailers mainly within sportswear and shoes. By operating within both areas, the Group's risk spreading and the coordination advantages increase. The Group's most well-known trademarks are Clique, Craft, Seger, Grizzly, James Harvest Sportswear, New Wave, Pax, Sagaform, Umbro (license), Nordica (license), Rollerblade (license) and Printer Active Wear.
This information was brought to you by Waymaker http://www.waymaker.net
The following files are available for download:
www.waymaker.net/bitonline/2002/06/04/20020604BIT00200/wkr0001.doc www.waymaker.net/bitonline/2002/06/04/20020604BIT00200/wkr0002.pdf