NACKA STRAND, Sweden, Sept. 26, 2002 (PRIMEZONE) -- Hexagon Automation, a business area within the Hexagon Group, has through its Norwegian subsidiary, Servi Motion Control AS, signed an agreement with Cylinderservice AS to acquire the operation and all fixed assets of the Cylinderservice plant in Rissa, Norway. Servi Motion Control has held a minority stake of 19 per cent in the company since 1992.
Cylinderservice AS is the leading manufacturer of hydraulic cylinders for the engineering, marine and offshore industries in Norway. The company's turnover amounted to more than 50 MNOK in 2001. Today Servi Motion Control is responsible for the marketing and sales of Cylinderservices' products on the Norwegian market and approx. 80 per cent of Cylinderservice's turnover has been invoiced through Servi Motion Control.
By adding the operations in Rissa, Servi Motion Control will secure a significant supplier, while the previous minority ownership in the parent company Cylinderservice AS will be divested. The acquisition is expected to contribute to Hexagon's earnings as from closing, which is expected to take place on September 1, 2002.
By this acquisition, Servi Motion Control AS will increase the turnover to 350 MNOK and its position as the leading hydraulics supplier in Norway will be further strengthened.
For further information, please contact
Ola Rollen, President and CEO Borje Vernet, CEO Hexagon AB Hexagon Automation Phone: +46 8 601 26 20 Phone: +46 42 38 15 50
Hexagon AB is a multinational engineering group with the long-term ambition of positioning itself as number one or number two within its strategic sectors. The operation is divided into three business areas: Hexagon Automation, Hexagon Engineering and Hexagon Metrology. The group's targets are to increase earnings per share after tax by at least 15 per cent p.a., and achieve a return on capital employed higher than 15 per cent over the business cycle. Current turnover amounts to more than 7 GSEK p.a.
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