Simtronics doubles revenue through acquisitions
Simtronics ASA, the Norwegian fire and gas safety company, announced today the acquisitions of Etech Process AS (100 %) of Norway and a letter of intent to acquire Fire Eater A/S (51 %) of Denmark. The acquisitions are part of Simtronics' strategy to become a leading supplier of systems for fire and gas safety and will double the company's revenue going forward.
[20.12.2007]ETech Process provides nitrogen based safety systems aimed at stabilising the environments aboard chemical and gas carriers as well as on offshore installations. Kristiansand based Etech expects a revenue of NOK 60 million this year with increasing profit margins. The company has 37 employees and hired personnel. Simtronics acquires all shares in Etech for a price up to NOK 44.8 million, pending financial performance the next three years. The acquisition has a combined cash and Simtronics shares settlement.
Fire Eater provides gas based fire extinguishing systems, primarily using the INERGEN® clean air extinguishing agent. The company has a broad market base in Europe. Hillerød based Fire Eater had a revenue of NOK 78 million this year (2006/2007) with attractive profit margins. Simtronics' letter of intent to acquire 51% of the shares in Fire Eater, is at a price of NOK 60.6 million. The acquisition has a combined cash and Simtronics shares settlement.
"The acquisitions of Etech and Fire Eater are major steps in fulfilling our growth and diversification strategy. The two companies' products are highly complementary to our own. The acquisitions give us improved market penetration, a broader product range and releases considerable synergies," said Simtronics CEO, Rune Martini.
The acquisitions are subject to due diligence and final approval from Simtronics' Board of Directors. Final agreements are expected to be signed within mid February 2008.
Simtronics will present the acquisition in more detail at a lunch presentation held at Felix Conference Centre in Oslo, on Thursday, December 20th, at 11:30 am. A more detailed announcement will be released later according to provisions given by the Oslo Stock Exchange.
For further information, please contact:
Mr Rune Martini, CEO of Simtronics ASA,
telephone +47 48 07 80 80
Mr Pål Selboe Valseth, CFO of Simtronics ASA,
telephone +47 917 00 270
SIMTRONICS group (Oslo Stock Exchange: SIMTRO) is a world class provider of sophisticated gas and flame detection systems and extinguishing solutions. Our products are used worldwide to provide early detection of hazardous events. The Company's products are used by the oil and gas industry as well as in shipping, petrochemical and other process industries and in mining. Simtronics has a well established market base in Europe with Norway, France, UK and Germany as the single most important markets. Simtronics' heritage goes back to 1948.