Industri Kapital new owner of Eltel Networks
THE COMBINATION OF ELTEL NETWORKS AND SWEDIA NETWORKS CREATES A LEADING INFRANET COMPANY IN NORTHERN EUROPE
A company controlled by the Industri Kapital 2000 Fund acquires Eltel Networks Corporation from funds managed/advised by CapMan and the management of Eltel Networks for approximately €190 million. Industri Kapital will combine Eltel Networks with its portfolio company Swedia Networks, to create a Northern European market leader within installation and maintenance of infrastructure for electricity and telecommunications. The transaction, which is subject to competition authorities’ approval, is expected to close in the middle of November 2004.
The new group will have annual sales of approximately €600 million and some 4,500 employees. It will combine the strong market positions, technical expertise and customer offerings, which Eltel and Swedia have today in their respective markets. The new group will be named Eltel Networks. Tuomo Rönkkö, current CEO of Eltel Networks, has accepted the position as CEO of the new group.
“The new structure will strengthen the operations and growth opportunities of Eltel Networks and Swedia Networks considerably, and the merger will further strengthen our joint position in Northern Europe. In line with our strategy, we will offer more efficient services and products that are closer to our customers and, therefore, easier available to them. We will utilise the cumulative know-how from combining EL and TEL operations and will continue to introduce best practices in the industry. We will set a benchmarking standard in the electricity and telecommunications sector with our portfolio of unique products and services that provide the best possible operational efficiency. With innovative and competitive service offerings, we will be part of shaping the industry and its future,” says Tuomo Rönkkö, CEO of the new Eltel Networks.
“Swedia has gone through a major restructuring process and is now well positioned for the future. The timing is excellent to further strengthen the business by combining Swedia and Eltel. The two companies’ businesses complement each other both geographically and offerings-wise,” confirms Jan Sjöqvist, CEO of Swedia Networks.
“We have invested in a company that is not only growing steadily, but is an expert and a pioneer in the industry. We will give our full support to the strategic goals of the new combined group. The combination of Eltel and Swedia follows a clear industrial logic and will create a strong and competitive player in the Nordic region,” states Michael Rosenlew, Partner, Industri Kapital.
CapMan fund’s shareholding in Eltel Networks is 83 per cent and Eltel Networks management’s 17 per cent. Swedia Networks is part of the Telefos Group, which is majority-owned by the Industri Kapital 2000 Fund, with TeliaSonera as minority owner.
For further information:
Christian Salamon, Partner, Industri Kapital: +46 8 678 95 27
Maria Nilsson, press co-ordinator, Industri Kapital, +46 8 678 95 51
About Industri Kapital
IK invests mainly in mid-sized companies with strong cash flow and profit improvement potential, operating in mature industries with fundamental underlying growth. Over the years, IK has developed significant experience within a number of industry sectors, primarily the manufacturing and service industries.