|
EVOX RIFA GROUP OYJ Stock Exchange Release
April 22, 2002 at 10:00 a.m.
EVOX RIFA GROUP BECOMES THE LEADING EUROPEAN ELECTROLYTIC
CAPACITOR MANUFACTURER THROUGH THE ACQUISITION OF BHC AEROVOX
Evox Rifa Group’s offer to acquire the entire share
capital of BHC Aerovox Ltd.(‘BHC’) has been accepted.
BHC is a major European electrolytic capacitor manufacturer
in Weymouth, United Kingdom. Through the acquisition, Evox
Rifa becomes the leading European player in growing electrolytic
capacitor market. The transaction is expected to be completed
by early May.
BHC is one of the biggest manufacturers of large can aluminium
electrolytic capacitors in Europe. The company’s net
sales were approximately EUR 26 and EUR 30 million in 2000
and 2001, respectively. BHC employs 219 persons. Evox Rifa
Group, based in Finland, is the sixth largest capacitor manufacturer
in Europe with a turnover of EUR 69 million in 2001. Evox
Rifa Group employs a total of 1200 persons worldwide. Its
electrolytic capacitors are manufactured in Gränna, Sweden
and in Nantong, China.
The acquisition, which implements Evox Rifa’s growth
strategy, will make it the leading European manufacturer of
said electrolytic capacitors and place it among the top players
worldwide. The management of Evox Rifa believes that substantial
synergy benefits will accrue to the company from the acquisition.
Economies of scale, stronger R&D efforts, focused investment
strategies and broader customer base would strengthen Evox
Rifa’s presence in the global market.
Evox Rifa pays EUR 5.4 million for the shares of BHC and
assumes its debts worth EUR 2.7 million. The seller is Aerovox
Incorporated, a capacitor manufacturer in the United States,
which is currently operating as a Chapter 11 debtor-in-possession
under the United States bankruptcy legislation. The sale of
BHC Aerovox’s shares was undertaken by a judicial auction
under the Chapter 11 proceedings. BHC Aerovox is not subject
to Chapter 11 proceedings.
In order to secure financing for the acquisition, the Board
of Directors of Evox Rifa Group will at a later stage propose
to an Extraordinary Shareholders’ Meeting to arrange
a rights issue. The largest shareholders comprising of Fennogens
SA, Veikko Laine Oy, Procurator Oy and Eläkevakuutusyhtiö
Varma-Sampo, have agreed to participate in the proposed rights
issue. These shareholders have agreed to underwrite the rights
issue whereby one existing share would give the right to subscribe
for one new share at a price of 7 cents, up to EUR 6.07 million.
The main drivers for growth of electrolytic capacitors are
the growth of electronics in automotive industry and increased
demand for energy saving products.
Evox Rifa designs, manufactures and markets globally capacitor
solutions to key industrial sectors in which the need of passive
components is continuously growing. Key sectors are telecommunications,
automotive electronics, industrial electronics and consumer
electronics. The company concentrates on electrolytic and
plastic film as well as paper capacitors. The strength of
Evox Rifa is developing special solutions in close co-operation
with customers.
The shares of Evox Rifa Group Oyj are traded on the Helsinki
Exchanges in Finland.
EVOX RIFA GROUP OYJ
Harri Launonen
President
Additional information from :
Harri Launonen
President of Evox Rifa Group Oyj in Finland:
tel +358 9 5406 5001
Lars-Göran Stenberg
Business Unit Manager
Evox Rifa AB in Gränna Sweden:
tel. +46 390 12 431
|
