Rautaruukki, SKF and Wartsila to Sell Ovako
Exhibit
99.1
Rautaruukki,
SKF and Wartsila to Sell Ovako
STOCKHOLM,
Sweden--(BUSINESS WIRE)--July 17, 2006—Rautaruukki Corporation, AB SKF
(NASDAQ:SKFR) (LSE:SKFB) (STO:SKFB) (STO:SKFA), and Wartsila Corporation have
signed an agreement to sell the operating companies owned by Oy Ovako Ab to
a
company owned by the shareholders of Hombergh Holdings BV, WP de Pundert
Ventures BV and Pampus Industrie Beteiligungen GmbH & Co. KG. The
transaction is subject to relevant regulatory approvals and is expected to
close
in September 2006.
The
total
price for the shares is approximately EUR 660 million, comprising a cash payment
at closing of approximately EUR 535 million, a deferred cash payment of EUR
15
million to be paid in July 2008 and an interest-bearing vendor note of EUR
110
million to be paid within 3-6 years from closing. In addition, the buyer will
assume estimated net debt of EUR 40 million at closing, making Ovako's
Enterprise Value approximately EUR 700 million. As a result of the transaction
and the subsequent liquidation of Oy Ovako Ab, SKF will make a tax-free capital
gain of between SEK 400 and 450 million.
The
new
Ovako was established in May 2005, when the owners combined their long steel
businesses into a jointly owned new company. Rautaruukki, SKF and Wartsila
own
47.0%, 26.5% and 26.5% of Ovako, respectively. With 16 production sites and
some
4,600 employees in Europe, Ovako is a leading producer of engineering long
steel
products for the European rolling bearing, heavy vehicle, automotive and general
engineering industries. Pro forma net sales in 2005 amounted to EUR 1.3 billion
and pro forma EBIT to EUR 150 million.
Hombergh
Holdings BV and WP de Pundert Ventures BV are Dutch holding companies active
in
among others precast concrete, steel and energy sectors. Pampus Industrie
Beteiligungen GmbH & Co. KG a major player in the German steel industry with
18 factories in Germany and one in Canada.
Goteborg,
July 17, 2006
Aktiebolaget
SKF
(publ.)
ATTENTION
ATTENTION
At
10.00
hs. CET, today July 17, SKF's CFO Tore Betilsson will hold a telephone
conference to answer questions about the agreement. Please call in on telephone
number x00 0-000 000 00.
For
further information, please contact:
PRESS:
Xxxx X Xxxxxx, SKF Group Communication, tel. +46 (0)31 337
1541,
e-mail: Xxxx.X.Xxxxxx@xxx.xxx
IR:
Xxxxxx Xxxxx, SKF Investor Relations, tel x00 (0)00 0000000,
e-mail:xxxxxx.xxxxx@xxx.xxx
This
information was brought to you by Waymaker
xxxx://xxx.xxxxxxxx.xxx
CONTACT:
Aktiebolaget SKF
Tel.
x00
00 000 00 00
Fax.
x00
00 000 00 00
xxx.xxx.xxx
