STOCKHOLM, Sweden, Aug. 29, 2003 (PRIMEZONE) -- Today, New Wave Group has made a Letter of Intent 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 intended 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 intends to acquire 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.
In the short term (the next year) the acquisition's influence on the result is expected to be none or slightly negative. Thereafter the intended acquisition is expected to have positive impact on the result. The acquisition is expected, to some extent, to have a negative effect on the New Wave group of companies' result for 2003. 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.
Ytterby on 29 August 2003
New Wave Group AB (publ) Goran Harstedt dCEO
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