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2009-04-14 16:46:59 CEST 2009-04-14 16:48:07 CEST REGULATED INFORMATION Marel Food Systems hf. - Company AnnouncementMarel Food Systems announces sale of non-core assets for EUR 37.5 millionMarel Food Systems is the leading global provider of advanced equipment and systems for the poultry, fish and meat processing industries with a 15% market share. The company has in the past few years strengthened its position in a growing market through strategic acquisitions. The focus is now on increasing profitability and organic growth in the company‘s core businesses. In this context, the sale of non-core assets is announced. • The assets that have now been sold are real estate assets in Amsterdam, formerly belonging to the Food & Dairy part of Stork Food Systems, and Scanvaegt Nordic A/S which is a non-core unit operating outside the food industry. • The proceeds from the sales are used to increase the company's cash position and to reduce short term debt. The proceeds are EUR 37.5 million, thereof EUR 35 million paid in cash. • The sales proceeds are fully in line with original management objectives. Realised profits from the sales are in excess of EUR 10 million. Further details will be provided when the company publishes its Q1 interim results on May 6th. Marel Food Systems has previously announced the intention of disposing of 2-4 non-core assets in the current year. The sales proceeds of these disposals are expected to be in the range of EUR 50 million with limited total effect on operating profits. The proceeds will be used to increase the company's cash position and to pay down short term debt. The current sales provide EUR 35 million in cash. The sale of Stork's Food & Dairy operation is in good progress and sale of 1-2 other assets is under consideration. Theo Hoen, CEO of Marel Food Systems hf: „After Marel and Stork Food Systems joined forces last year, we announced that we would focus fully on increasing the profitability and internal growth of our core businesses. Our business is based on providing advanced solutions to the poultry, meat and fish processing industries. We are in an unique position to serve our global and growing customers.“ Scanvaegt Nordic Scanvaegt Nordic is acquired by the Grundtvig family, which founded Scanvaegt in 1932. Scanvaegt Nordic had a turnover of EUR 31.2 million in 2008 and an EBIT profit of EUR 2.9 million. Marel Food Systems bought Scanvaegt in August 2006 and a substantial part of the acquisition price was paid with shares in Marel Food Systems. Scanvaegt´s major business is services to the food processing industry and those operations have been fully merged with Marel Food Systems' operations. The Grundtvig family is among the largest shareholders of Marel Food Systems and has supported the company´s growth. Grundtvig Invest owns 10.6% of Marel Food Systems' shares and Lars Grundtvig is a member of the Board of Directors. Lars Grundtvig:"Our intention is to support Scanvaegt Nordic to grow further in its various fields. This is a company that we know very well and which has good management. At the same time we will remain as key shareholders in Marel Food Systems. Our family has been in the business of providing solutions to the food processing industry since the foundation of Scanvaegt in 1932. We believe Marel is in a unique position to capture the forward looking growth in the industry and therefore to create good shareholder value." Real estate in Amsterdam Marel Food Systems has reached an agreement on the sale of real estate at Ketelstraat in Amsterdam, which previously housed the operations of Stork Food& Dairy Systems BV. The Food & Dairy division's operations have already been relocated to another location in Amsterdam. The sale was conducted through a closed tender, with a limited number of interested parties invited to participate. The proceeds of the disposal of the property - which included land, leasehold and buildings - are fully in line with the company's expectations, taking into account the property's unique location in the city of Amsterdam, the state of the buildings and the current economic climate. |
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