Industri Kapital sells Prevesta to Block Watne Group for SEK 1,900 million

Block Watne Group (BWG), one of Norway’s leading housebuilders and listed on Oslo Børs, has entered an agreement with the Industri Kapital 2004 Fund to buy 100 per cent of the shares in Prevesta, Sweden’s leading producer of prefabricated houses with the brands Myresjöhus and SmålandsVillan. In 2006, Prevesta had a turnover of SEK 1,756 million (approx. EUR 189 million) and an operating profit of SEK 191 million (approx. EUR 21 million).

The purchase price amounts to SEK 1,900 million (approx. EUR 204 million) which includes the transfer of debt and shareholder loans of SEK 381 million (approx. EUR 41 million). The consideration consists of approximately SEK 1,215 million in cash (approx. EUR 131 million) and 6,502,242 shares in BWG (representing approx. 12.6% of the shares in BWG after the transaction). By means of the transaction, the Industri Kapital 2004 Fund will become one of the largest shareholders in BWG.

In March 2005 the Industri Kapital 2004 Fund acquired Prevesta. During Industri Kapital’s ownership a significant restructuring effort has taken place. A branding strategy was successfully introduced, with the brands Myresjöhus and SmålandsVillan meeting the needs of different customer groups. At the same time, further rationalisations of production were initiated, including the introduction of common product platforms and brand independent production. Investments have been made in additional production capacity, including the establishment of a new factory in Sundsvall. Major focus has also been placed on project development. These initiatives together with good market development have enabled Prevesta’s strong growth in terms of turnover and profitability. Prevesta is now a leader in Sweden – measured both by the number of single-family houses delivered and turnover.

Michael Rosenlew, Partner at Industri Kapital says, ”Prevesta has been a fantastic investment for us. During Industri Kapital’s ownership the company has improved its financial performance and has strengthened its position in Sweden to become the leading producer of single-family houses. The recent investments and restructuring efforts have also created the foundation for further growth and profitability for the company. We are also pleased to become a major owner in BWG and are impressed with the company’s strong performance during the past few years. The combined company has excellent prospects for further successful growth and development.”

Lars Nilsen, President and CEO of BWG says, ”BWG has, for a period of time, screened the market for possible acquisition targets outside of Norway. Swedish Prevesta, with its excellent brands Myresjöhus and SmålandsVillan, fulfils all the criteria BWG have defined for the evaluation process. Prevesta’s management has shown strength and ability to take action by managing to turn the company into a high performer. Management has displayed an ability to grow the business without margin erosion and has created a financially sound operation. The acquisition of Prevesta rests on a strong industrial logic and provides the foundation for future profitable growth for BWG.”

Mikael Olsson, CEO of Prevesta says, ”Industri Kapital has been a good owner. The recent years have been an exciting time for the company and the restructuring effort during Industri Kapital’s ownership has resulted in considerable investments and a strong financial performance. We are pleased that the new owner of Prevesta will be BWG, a successful industrial partner with a long-term focus. The two companies complement each other well in particular in terms of know-how and market positions and we look positively on the future.”

The transaction is conditional of approval by the Swedish Financial Supervisory Authority (Finansinspektionen) and the Financial Supervisory Board in Luxemburg.

Industri Kapital:
Michael Rosenlew, Partner
Ph: +46 8 678 95 25
 
Charlotte Laveson, Communication Manager
Ph: +46 8 678 95 51

Prevesta:
Mikael Olsson, CEO
Ph: +46 70 602 1577

Block Watne Group:
Lars Nilsen, CEO
Ph: +47 23 24 60 00