Industri Kapital, KONE and the management of Paroc sell Paroc to Banc of America Equity Partners

Industri Kapital, Partek Corporation, part of the Kone Group, and the management of Paroc have on 15 December 2002 signed an agreement with Banc of America Equity Partners on the sale of shares in Paroc Group Oy Ab to a Finnish holding company owned by a fund administered by Banc of America Equity Partners. The Industri Kapital 1997 Fund will sell approximately 47% and Partek approximately 38% of the shares in Paroc. The management of Paroc will have an option to continue their ownership in Paroc.

Paroc is one of the leading manufacturers of stone wool insulation products and solutions in Europe. Paroc products include building insulation, technical insulation, marine insulation, structural stone wool sandwich panels and acoustics products. Paroc’s net sales in 2001 totalled EUR 281 million (January-September 2002: EUR 206 million) and the company has 1,800 employees. Last year’s operating profit before depreciations and non-recurring items (EBITDA) totalled EUR 38 million (33). Paroc’s main markets are Finland, Sweden, the Baltic countries and Poland, and it has sales companies in 13 countries.

The agreement is subject to, inter alia, obtaining necessary regulatory approvals in Finland and in some other countries. The transaction is expected to be completed early 2003.

Michael Rosenlew, Director of Industri Kapital, says: “We acquired our stake in Paroc in 1999 and the investment has well met our expectations on return on investment. The company has been well managed over the years and it has shown excellent development. We have expanded in eastern Europe and made considerable investments, especially in Poland where we have built new production lines. We have also changed the company’s focus from bulk to more value-added products such as sandwich panels and technical insulation products.”

According to Mr Peder Biese, President and CEO of Paroc Group, Paroc has positive prospects. “The progress we have made during the past years, along with expansion, investments and a realigned product focus, have created a solid base for the future.”

Further information:

Michael Rosenlew, Director, Industri Kapital, tel. +46-8-6789500
Peder Biese, President and CEO, Paroc Group, tel. +358-204-55-4868