Kongsberg Gruppen (KONGSBERG) has signed an agreement with the Nordic private equity fund Altor for the sale of the parts of Simrad that develop, manufacture and sell maritime electronics for use in yachts and commercial vessels. The business will continue under the name Simrad Yachting.
KONGSBERG will continue to own the remaining part of Simrad that focuses on Fisheries activities. The sale will take place on a debt-free basis for a total of MNOK 586. The agreement is contingent on the approval of the competition authorities. The price is based on the accounts as at 31 December 2004, with the regulation mechanisms linked to the closing of the accounts on the date of the sale. The sale is expected to lead to a gain compared with the book value of the assets. The final gain will depend on the closing of the accounts on the date of the sale.
"Simrad Yachting, which has largely addressed the consumer market, has developed in a direction that differs more and more from the industrial markets served by the rest of KONGSBERG. Consequently, Simrad Yachting is no longer considered a core activity. We have been working with a variety of solutions for some time, and we are of the opinion that we have found a good, future-oriented solution for Simrad Yachting, as well as for Fishery activities. This implies a concentration of our strategy in the maritime segment", reports Torfinn Kildal, president of Kongsberg Maritime.
Altor will invest considerable efforts in ensuring that Simrad Yachting will improve its strategic position in yacht electronics.
"The market for yacht electronics is experiencing strong growth and change as a result of new technology and lower production costs. Simrad is one of the world's leading suppliers of such equipment, and stands on the threshold of numerous exciting possibilities. We are looking forward to working with management to further reinforce the company's competitiveness and market position", comments Hugo Maurstad, a partner in Altor.
As of next year, Simrad's Fishery activities will be integrated into KONGSBERG's hydroacoustics activities. Subsequent to the sale, KONGSBERG's activities will concentrate on commercial applications in the business areas 'Offshore & Merchant Marine' and 'Defence & Aerospace'.
For further information, please contact: Torfinn Kildal, President of Kongsberg Maritime, telephone ( 47) 958 85188 Jan Erik Korssjoen, CEO of KONGSBERG, telephone: ( 47) 920 60000 Hugo Maurstad, partner in Altor, telephone ( 47) 901 04308
Altor 2003 GP Ltd is a fund with a portfolio of NOK 5 billion, where Altor Equity Partners AB and Altor Equity Partners AS are investment advisers. The fund specialises in Nordic investments ranging from MNOK 500 to NOK 4 billion. Altor focuses on opportunities that can actively contribute to creating value through operational improvements, growth (including consolidation and Nordic/international expansion) and strategic re-positioning. Altor has an investment organisation consisting of 25 individuals with strong qualifications for helping companies go through processes of change. Further information is available on Altor's website at: www.altor.com