Friday, December 21, 2007
BE Group grows with acquisition in the Czech Republic
BE Group AB is strengthening its position in the Czech steel market with its first acquisition in Central Europe, of the privately owned company Czechprofile s. r. o. The planned merger of Czechprofile and BE Group’s Czech subsidiary is expected to yield business synergies and minor cost reductions.
Czechprofile reported sales of about SEK 140 million and operating profit of SEK 2.9 million for the 2006 financial year. Ownership of the company will be transferred in January 2008. The acquisition is expected to have an immediate and favourable impact on BE Group's operating profit.
BE Group President and CEO Håkan Jeppsson remarks:
“We are very pleased to have taken the first step in implementing our acquisition strategy in Central Europe. Czechprofile is not only a strategic addition to our operations in the Czech Republic. In geographical terms, the company is also ideally situated to supply products to southern Poland.”
Czechprofile was founded in 1996 and does business in the market for both flat and long steel products. Total distribution volume in 2006 was about 25,000 tonnes.
“The company’s focus on the service business and long products, for which margins are higher, is a perfect complement to our own product range,” says Jeppsson.
Czechprofile’s operations, which have a strong position in the southeastern regions of the country, are run from three facilities. The company has two warehouses located in Uherske Hradiste along with the head office, as well as a combined production and warehouse facility in Prerov, where BE Group is already represented. Czechprofile has 40 employees.
The acquired company will be merged with BE Group Czech Republic, which is expected to yield certain purchasing synergies. Milan Vasut, BE Group’s managing director in the Czech Republic, will be the managing director of the merged company.
For further information, please contact:
Håkan Jeppsson, President and Chief Executive Officer
+46 (0)705-50 15 17, hakan.jeppsson@begroup.com
Per Gullstrand, Business Area Manager, New Markets
+46 (0)705-24 58 44, per.gullstrand@begroup.com
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The information in this press release is such that BE Group AB (publ) is required to publish pursuant to the Swedish Securities and Clearing Operations Act and/or the Swedish Financial Instruments Trading Act. The information was submitted for publication on 20 December 2007 at 7:30 AM.
BE Group, listed on the Stockholm Stock Exchange since 24 November 2006, is one of the leading trading and service companies within steel and other metals in Europe. The company has about 10,000 customers, primarily within the construction and engineering industries. BE Group provides service in the steel, stainless steel and aluminium sectors. The company’s sales in 2006 were SEK 6.7 billion. BE Group has approximately 950 employees in ten countries in northern Europe, where Sweden and Finland are its largest markets. The head office is in Malmö, Sweden. Read more about BE Group at www.begroup.com