KRISTIANSTAD, Sweden, April 29, 2004 (PRIMEZONE) -- Envelope manufacturer Bong Ljungdahl AB has signed an agreement to acquire the Finnish envelope company Kirjekuori Oy.
Kirjekuori is a family-owned company that has established a strong position in the Finnish market over the past 15 years. The company has achieved cost-effective production by locating its operations in a low- cost area of eastern Finland, an area that all the more interesting in view of its closeness to the fast-growing Russian market. Kirjekuori is primarily focused on standard envelopes and conducts successful marketing activities in this segment. Kirjekuori has an annual turnover of around 7 million Euro an annual production capacity of some 800 million envelopes, with 45 employees.
"The acquisition will strengthen our position in the Nordic market and is a step in our long-term strategy to consolidate the European envelope market. This was an excellent opportunity for us to close the deal, but it does not represent a change in our focus. Our top priority is still on reducing costs and boosting profitability," says Anders Davidsson. The acquisition of Kirjekuori Oy is expected to make a positive contribution to Bong's earnings in 2005.
A due diligence assessment will be carried out during May and the acquisition is expected to be completed on 31 May 2004.
Kristianstad, 29 April 2004
Bong Ljungdahl AB
Anders Davidsson President and CEO
Bong is one of Europe's leading envelope companies. The Group has an annual turnover of approximately SEK 1.9 billion, some 1,500 employees and an annual manufacturing capacity of around 15 billion envelopes in Sweden, Denmark, Norway, Finland, Poland, Germany, Belgium, Great Britain and Ireland. Bong has a very strong market position, particularly in Northern Europe, and conducts sales and marketing in eleven European countries through its own sales organisations. The Group sees attractive opportunities for further expansion and development. Bong is a publicly listed company and its shares are quoted on the O list of the Stockholm Stock Exchange.
For additional information contact Anders Davidsson, Managing Director and CEO of Bong Ljungdahl AB. Telephone (switchboard) +46 44 20 70 00, (direct) +46 44 20 70 80, (mobile) +46 (0)70 545 70 80.
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