ASSA ABLOY has signed an agreement with ABB to sell Lorentzen & Wettre, part of the former Cardo group. The selling price is SEK 750 M on a cash and debt free basis.
Lorentzen & Wettre manufactures and sells process equipment for the pulp and paper industry, had a turnover of SEK 307 M in 2010 and 188 employees.
ASSA ABLOY has signed an agreement with ABB to sell Lorentzen & Wettre, part of the former Cardo group. The selling price is SEK 750 M on a cash and debt free basis.
Lorentzen & Wettre manufactures and sells process equipment for the pulp and paper industry, had a turnover of SEK 307 M in 2010 and 188 employees.
"I find it very satisfying that Lorentzen & Wettre in ABB gets a long term owner that gives the company an industrial home and creates opportunities for a continued good development" said Johan Molin, President and CEO of ASSA ABLOY.
The transaction is expected to close during the second half of 2011 and is subject to regulatory approvals.
Summary of the Cardo transaction:
ASSA ABLOY announced a public offer for the Cardo Group on December 13, 2010, for a total price of SEK 11,340 M. At the announcement of the public offer ASSA ABLOY communicated its intention to consolidate Cardo Entrance Solutions in ASSA ABLOY's division Entrance Systems and to sell the other businesses, i.e. Cardo Flow Solutions and Lorentzen & Wettre, that do not long term fit ASSA ABLOY's operations.
The acquisition of Cardo closed in March 2011 and Cardo Entrance Solutions was consolidated in ASSA ABLOY from March 18, 2011.
On April 7, 2011, it was announced that ASSA ABLOY had signed a deal with Sulzer Ltd. to sell Cardo Flow Solutions for SEK 5,900 M on a cash and debt free basis and today it is announced that ASSA ABLOY has signed a deal with ABB to sell Lorentzen & Wettre for SEK 750 M on a cash and debt free basis.
In both transactions ASSA ABLOY is advised by SEB Enskilda as financial adviser and Linklaters Advokatbyra AB as legal adviser.