STOCKHOLM, Sweden, March 18, 2002 (PRIMEZONE) -- Munters acquires the Norwegian company Polygon AS, with operations in Norway and Denmark, and further strengthens its position in Water and Fire Damage Restoration Services.
Polygon AS is based in Oslo, Norway, and is the leading provider in services supporting the insurance industry to restore buildings after Water and Fire damages. Munters is the leading provider of Water Damage Restoration in the world. Munters has since 1986 owned 1/3 of Polygon's shares. Polygon's other shareholders are the four insurance companies Vesta Forsikring AS (a part of Nordea Group), If Skadeforsikring AS (a part of the If Group), Gjensidige Nor Forsikring (a part of Gjensidige Nor Group) and Norsk Hussopp Forsikring Gjensidige. The sellers are the primary customers of Polygon.
"The deal is logical in light of the internationalization of the European as well as the Norwegian insurance industry," said Bjorn Thomt VP of Vesta and Chairman of the board of Polygon. "We are not exiting our interest in Polygon. It is our intention to exchange our holding in the local supplier Polygon to the international supplier Munters."
The Polygon Group had sales of NOK 390 million during 2001 (SEK 450 million) and employs 230 persons. In addition to own direct sales, Polygon has built up a network of franchisees covering the Norwegian market. The franchisees are employing another 180 persons. Polygon and Munters are holding a majority share of the Danish subsidiary Polygon A/S. Together with its franchisees Polygon has 37 depots in Norway and 10 in Denmark. After the acquisition Munters will be the leading company in Water and Fire Damage Restoration in the Nordic countries.
"The cooperation with Munters has been an important part of our Nordic business for years" said Svein-Hakon Bottolfsen, President of Polygon. "It is logical that Munters becomes the full owner at a time when our insurance customers are transforming from local to international players. Munters has since some years extended the service scope from Water Damage Restoration to also include Fire Damage Restoration, a development, which has been supported through the cooperation with Polygon."
The acquisition is based on a value of Polygon of NOK 230 million. Munters has acquired the remaining 2/3 of the shares. The purchase price for the remaining shares will be paid in two installments. 70% of the purchase price, NOK 107.3 million, has been paid in cash on closing. The remaining 30% will be paid in the beginning of 2005 based on the performance of the company during 2002-2004.
The sellers have the intention to purchase shares in Munters for at least the same amount as the first installment. The sellers' representatives will remain on the board, which will be extended with two members from Munters. The present management in Polygon will remain.
Polygon will be consolidated in Munters from January 2002. The acquisition will create goodwill of approximately SEK 72 million and excess value in buildings and machinery of an additional SEK 33 million. The goodwill will be amortized over 20 years and the excess value over 5-20 years. The impact on Munters' earnings per share will be positive in the year 2002.
Munters MCS service business has, after the acquisition, yearly sales of approximately SEK 1.8 billion which means that Munters service operations including MCS and after sales service represent 46% of total sales.
The acquisition is subject to approval from the Norwegian Ministry of Trade and Industry (Naerings- og Handelsdepartementet).
Munters is the world leader in humidity control with products and services for dehumidification, humidification and cooling of air. Customers are found in a wide range of segments, the most important being insurance, utilities, food, pharma and electronics industries. Manufacturing and sales are carried out via the Group's own companies in more than 25 countries in Europe, Americas, and Asia. The Group has 2,600 employees and net sales of SEK 3,900 million. Munters is listed on Stockholmsborsen, the Stockholm Stock Exchange. For more information see www.munters.com
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