Indutrade completes acquisition of Key Valve Technologies, South Korea
Indutrade's subsidiary HP Valves BV in the Netherlands has completed the
acquisition of Key Valve Technologies Ltd in accordance with the declaration of
intent that was announced on 2 November 2009.
Key Valve Technologies (KVT) is a leading player in R&D and manufacturing of
high pressure valves. Its products are used to control pressure and flows in
severe-duty environments in power generation and in the petrochemicals industry.
KVT was founded in 1998 by Mr Key Min and today has approximately 30 employees
in Seoul, South Korea, with annual sales of approximately SEK 150 million.
HP Valves, a wholly owned subsidiary of Indutrade, offers a wide range of valves
for applications in the power industry and high-pressure applications for the
petrochemical industry and the oil and gas industry. HP Valves and KVT have been
working closely together for several years, and today nearly half of KVT's sales
are through HP Valves.
"This acquisition is a natural progression of our long-standing cooperation.
Together we can benefit from each other's knowledge and experience and continue
to grow together," says Marten Hinsenveld, President of HP Valves.
The now completed acquisition creates conditions to combine KVT's expertise and
experience in R&D with HP Valves' knowledge in manufacturing, marketing and
sales. The companies' products complement each other well, and together the goal
is to be the Supplier of Choice for flow solutions for the power generation
industry, the petrochemical industry and other demanding applications.
Following the acquisition, KVT is a wholly owned subsidiary of HP Valves and
organisationally is part of Indutrade's Special Products business area, which
had net sales of SEK 1,812 million in 2008. KVT will continue to operate as a
standalone enterprise within the Indutrade Group, with its current management
and employees.
"I am happy to welcome KVT into the Indutrade Group," says Johnny Alvarsson,
President and CEO of Indutrade. "KVT is a well-run and profitable company that
is a leader in its niche and thus a good fit in our acquisition strategy. At the
same time, we have strengthened our position in the energy segment and increased
our presence in Asia."
KVT is consolidated in the Group as from November 2009. The acquisition is
expected to have a marginally positive impact on Indutrade's earnings per share.
Stockholm, 12 November 2009
INDUTRADE AB (publ)
For further information, please contact:
Johnny Alvarsson, President and CEO, tel. +46 70 589 17 95.
