July 17, 2006
08:00 CET
Rautaruukki, SKF and Wärtsilä to sell Ovako
Rautaruukki Corporation Stock Exchange release July 17, 2006, at 9:00
Rautaruukki Corporation, AB SKF and Wärtsilä Corporation have signed an agreement
to sell the operating companies owned by Oy Ovako Ab to a company owned by the
shareholders of Hombergh Holdings BV, WP de Pundert Ventures BV and Pampus
Industrie Beteiligungen GmbH & Co. KG. The transaction is subject to relevant
regulatory approvals and is expected to close in September 2006.
The total price for the shares is approximately EUR 660 million, comprising a
cash payment at closing of approximately EUR 535 million, a deferred cash payment
of EUR 15 million to be paid in July 2008 and an interest-bearing vendor note of
EUR 110 million to be paid within 3-6 years from closing. In addition, the buyer
will assume estimated net debt of EUR 40 million at closing, making Ovako's
Enterprise Value approximately EUR 700 million. As a result of the transaction
and the subsequent liquidation of Oy Ovako Ab, Rautaruukki will make a tax-free
capital gain of EUR 100 million.
The new Ovako was established in May 2005, when the owners combined their long
steel businesses into a jointly owned new company. Rautaruukki, SKF and Wärtsilä
own 47.0%, 26.5% and 26.5% of Ovako, respectively. With 16 production sites and
some 4,600 employees in Europe, Ovako is a leading producer of engineering long
steel products for the European rolling bearing, heavy vehicle, automotive and
general engineering industries. Pro forma net sales in 2005 amounted to EUR 1.3
billion and pro forma EBIT to EUR 150 million.
Hombergh Holdings BV and WP de Pundert Ventures BV are Dutch holding companies
active in among others precast concrete, steel and energy sectors. Pampus
Industrie Beteiligungen GmbH & Co. KG a major player in the German steel industry
with 18 factories in Germany and one in Canada.
Additional information:
Sakari Tamminen, President & CEO, tel. +358 20 592 9075
Mikko Hietanen, CFO, tel. +358 20 592 9030
Rautaruukki Corporation
Taina Kyllönen
VP, Corporate Communications
Ruukki supplies metal-based components, systems and integrated systems to the
construction and mechanical engineering industries. The company has a wide
selection of metal products and services. Ruukki has operations in 23 countries
and employs 12,000 people. Net sales in 2005 totalled EUR 3.7 billion. The
company's share is quoted on the Helsinki Exchanges (Rautaruukki Corporation:
RTRKS). The Corporation has used the marketing name Ruukki since 2004.
DISTRIBUTION
Helsinki Exchanges
Principal Media
www.ruukki.com