Fiskars - Company Announcement

Fiskars acquires leading U.S. watering brands Nelson and Gilmour

Fiskars Corporation       Stock Exchange Release    Sept 11, 2014 at 16.30 EET

Fiskars Corp., headquartered in Helsinki, Finland, has signed an agreement to
purchase the Bosch Garden and Watering business, including leading U.S.
watering brands Gilmour and Nelson, from the Robert Bosch Tool Corporation in
order to strengthen and diversify Fiskars' garden and yard care portfolio. 

Based in Peoria, Ill., USA, the acquired watering business product assortment
includes hoses, hose ends, sprinklers, nozzles and watering timers under the
Gilmour and Nelson brands. The acquisition includes all related assets and
leases, as well as manufacturing operations in Missouri, USA and Ningbo, China
locations. The watering business employs approximately 440 people in total,
about 270 of which are in the U.S. 

The purchase price for the business and related net assets is USD $ 30.0
million, equalling approximately EUR 23.2 million, subject to working capital
adjustments as per closing of the transaction. The closing, which is subject to
approval by the governmental authorities, is expected to take place during
fourth quarter 2014. 

In 2013, the net sales of the acquired watering business were $ 116.7 million
(EUR 90.3 million), which included product lines that have since been
discontinued. According to Fiskars' assessment the business was not profitable
in 2013. The seasonally-driven watering business traditionally peaks during the
second quarter of the year, and the acquisition is expected to have a limited
effect on Fiskars Group's sales and a negative effect on Fiskars Group's EBIT
excluding non-recurring items during 2014. The transaction will be financed by
Fiskars'existing credit facilities. 

The acquired watering business will become a part of the Fiskars' Americas
segment immediately following the purchase, and Fiskars expects to record
non-recurring expenses related to the integration of the business starting
already in 2014. The acquisition is not estimated to have a positive effect on
Fiskars EBIT excluding non-recurring items in 2015. Over time, Fiskars will
pursue synergies by augmenting product innovation, leveraging category
adjacencies and streamlining processes across brands as opportunities arise. 

“Our acquisition of the Nelson and Gilmour brands is in strong alignment with
Fiskars' strategy, which includes the opportunity to expand our business in
adjacent categories that complement our existing portfolio. This addition to
the group brings with it industry-leading expertise in watering, which is
globally one of the largest gardening categories,” said Kari Kauniskangas,
president and CEO of Fiskars Group. 

“Both Nelson and Gilmour brands have longstanding reputations for quality and
innovation, which makes them solid additions to our garden and yard care
offerings. We anticipate this transaction will allow us to maximize our
energies, resources, talents and efforts for achievement in this category,
meanwhile benefitting our consumers and trade partners,” said President of
Fiskars Americas, Paul Tonnesen. 

“Bosch is pleased to sell this business to Fiskars, a strong and respected
company,” said Heiko Fischer, president of Robert Bosch Tool Corporation. “The
Power Tools division in North America will continue to focus on our core
business of producing innovative power tools for both the do-it-yourself and
professional contractor markets. The Power Tools division in Europe is still
actively producing power tools for the Lawn and Garden business. We wish
Fiskars success in this sector and we will work diligently to ensure a smooth
transition for our associates and our customers alike.” 


Kari Kauniskangas
President and CEO


Nelson and Gilmour product photography is available at
http://fiskarsgroup.com/media/image-bank. 



For more information:

European- and investor-specific inquiries:
Fiskars Corporate Communications Director: Anu Ilvonen, tel. +358 204 39 5446,
anu.ilvonen@fiskars.com 


U.S.-specific inquiries

Fiskars Americas Marketing Communications Director Maggie Younggren, tel :+1
608 294 4509, maggie.younggren@fiskars.com 

Robert Bosch LLC Director of Media Relations and Public Relations Cheryl
Kilborn, tel. +1 248 876 1167, cheryl.kilborn@us.bosch.com, www.bosch.us 



Fiskars 365 - celebrating centuries of pride, passion and design. Every day.

Established in 1649 as an ironworks in a small Finnish village, Fiskars has
grown to be a leading global supplier of consumer products for the home, garden
and outdoors. Available in more than 60 countries, Fiskars products solve
everyday problems, making daily home, garden and outdoor projects easier and
more enjoyable through their superior performance and design. Fiskars is listed
on NASDAQ OMX Helsinki, and in 2013 the company's net sales were 799 million
euro. The group's key international brands are Fiskars, Iittala and Gerber.
www.fiskarsgroup.com/365 



About Gilmour
Gilmour is known for its quality lawn-and-garden products, which boast designs
born out of ongoing research, engineering, testing and improvements. Over the
years, the brand has introduced several category innovations, including the
first pistol-grip nozzle in 1949 and America's first anvil hand pruner, whose
roots stretch back as far as 1850. 

About Nelson

Nelson became the first sprinkler manufacturer in the United States in 1911. In
addition to launching the rotating sprinkler, an oscillating sprinkler that
adjusts to the size of your lawn and a sprinkler that can shut itself off, the
company is committed to precise watering (vs. overwatering) and conserving
natural resources and water bill costs for consumers. 

About Robert Bosch Tool Corporation

The Power Tools Division of the Bosch Group is the world market leader for
power tools, power tool accessories and measuring tools. In 2013, its roughly
19,000 associates gener­ated sales of 4.0 billion euros (USD $5.2 billion), 90
percent of which is outside of Germany. With brands such as Bosch, SKIL® and
Dremel®, the division stands for customer focus and great engineering progress.
The core success factors are innovative strength and pace of innovation. The
divi­sion generated about 35 percent of its sales in 2013 with products that
have been on the market for less than two years. In 2014 Bosch Power Tools will
again launch more than 100 new products onto the German market in its four
business segments power tools, accesso­ries, measuring tools and garden tools.

Attachments:

20140911 Watering_Eng.pdf