Panostaja Oyj - Company Announcement

PANOSTAJA OYJ HAS SOLD LÄMPÖ-TUKKU OY'S BUSINESS OPERATIONS TO CORDES & GRAEFE KG. PANOSTAJA OYJ ADJUSTS ITS RESULT MANAGEMENT.

Panostaja Oyj        Stock Exchange Bulletin September 19, 2011     at 10:00





PANOSTAJA OYJ HAS SOLD LÄMPÖ-TUKKU OY'S BUSINESS OPERATIONS TO CORDES & GRAEFE
KG. PANOSTAJA OYJ ADJUSTS ITS RESULT MANAGEMENT. 



Lämpö-Tukku Oy, a subsidiary in which Panostaja Oyj has a 63.3% holding has
today signed a deed by which it sells its entire business operations to a new
Finnish subsidiary of  Cordes & Graefe KG. The deal is intended to be closed by
October 3, 2011. By virtue of the trade, Lämpö-Tukku Oy's assets and trade
liabilities are assigned to the buyer, with the exception of sales receivables.
The consideration paid for the traded assets is the balance sheet value of the
transferred balance items. The estimated total sale price is approx. MEUR 5.7
which will be paid in cash in two installments. In addition to the normal
liabilities of the trade, Panostaja will finance the buyer with an proximately
MEUR 0.7 investment in the buyer's invested unrestricted equity. The amount
will be repaid depending on the fulfillment of certain repayment terms, but no
later than within 36 months of the trade. The exact amount of the investment
will be agreed upon in conjunction with the closing of the deal. Panostaja will
not record sales profit or loss for the trade at the time of closing. As a
result of the trade, Panostaja Oyj will adjust the Group's net sales forecast. 



Due to this divestment, Lämpö-Tukku Oy will, in its entirety, be removed from
Panostaja Group's result from continuing business operations for the current
financial period and the reference period. Panostaja will adjust its result
management as regards the Group's net sales. In 2011, the Group's comparable
net sales are expected to grow approx. 20-25% over the previous year. The
profitability of the business areas is estimated to improve significantly
yielding a result of approx. MEUR 2.2-3.0 for the financial year. 



The previous result management on September 7, 2011: In 2011, the Group's net
sales are expected to grow approx. 15-20% over the previous year. The
profitability of the business areas is estimated to improve significantly
yielding a result of approx. MEUR 2.2-3.0 for the financial year. 



Without Lämpö-Tukku Oy, Panostaja Group's comparable net sales and profit from
continuing business operations for the 2010 financial period stood at MEUR
118.3 and MEUR 2.6, respectively. The comparable net profit from continuing
business stood at MEUR 1.1. 



Lämpö-Tukku Oy, which began its operations in 1956, is an import and wholesale
company for HVAC products. The company has developed into a versatile specialty
supplier, which is focused on the needs of reconstruction. The company's own
import activities constitute approx. 70% of its net sales. The company's
headquarters are in the Viikki district of Helsinki, in addition to which it
has branches in Espoo, Vantaa, Tampere and Seinäjoki. The net sales of
Lämpö-Tukku Oy during the financial year ending October 31, 2010 totaled MEUR
19.6, and the company's operating profit stood at MEUR 0.5. 



After the trade, the CEO and shareholder of Lämpö-Tukku Oy, Jouko Tyrkkö, will
continue as a CEO, as a partner and a significant shareholder in the purchasing
company. 



“Lämpö-Tukku has been operating independently within Panostaja Group for a long
time. This trade enabled us to free capital for new projects. I believe that
Lämpö-Tukku Oy will continue to grow profitably under the guidance of a
well-known and notable owner. I am particularly pleased that Jouko Tyrkkö will
continue at the helm of the company and help to develop it further in
collaboration with the new partner,” states Panostaja's CEO Juha Sarsama. 



“C & G is looking forward establishing partnership with Mr. Tyrkkö in Finland.
As Finnish family company, Lämpö-Tukku has created oppurtunities to strengthen
its customers focus and becoming one of the best holeselling companies and
partners for blumbers” says Mr. Hollweg from Cordes & Graefe KG. 



Lämpö-Tukku Oy's net sales and operating income in the financial periods from
November 1st 2010 to October 31st 2009 and November 1st 2008 to October 31st
2009 were as follows (FAS): 



(€1,000)





Nov. 1, 2009-Oct. 31, 2010  Nov. 1, 2008-Oct. 31, 2009



Net sales              19,604  17,347
Operating profit/loss     500   336  



Lämpö-Tukku Oy's balance on October 31, 2010 and October 31, 2009:



(€1,000)



                  Oct. 31, 2010  Oct. 31, 2009
Permanent assets            208            449
Inventory                 5,595          4,996
Receivables and                               
current assets            3,752          3,573
Total                     9,555          9,018
Equity                    1,030            764
Liabilities               8,525          8,254
Total                     9,555          9,018



Panostaja Oyj



Juha Sarsama

CEO





More information:



CEO Juha Sarsama, Panostaja Oyj, +358 (0)40 774 2099



CEO Jouko Tyrkkö, Lämpö-Tukku Oy, +358 (0)500 492 284



Panostaja Oyj is an active majority shareholder in Finnish SMEs. The core of
our operations is based on Finnish entrepreneurship and persevering the
development of entrepreneurial activity. Together with our entrepreneur
partners, we are cultivating companies to become the best in the field and are
thereby creating Finnish success stories. Panostaja Oyj currently operates in
twelve business areas. Panostaja Group's net sales for the 2010 financial
period stood at MEUR 140.5 without the effect of the divestments realized over
the financial period.