Rosti's CEO: PROCEEDS INCREASED BY A SALE NOW RATHER THAN LAST SPRING
From the news agency Direkt
Rosti, the plastic manufacturing subsidiary of the A.P. Møller-Maersk Group, has divested its Rosti Technical Plastics Division which accounts for the majority of its operations. The Buyer is Nordstjernan, the Swedish family-owned conglomerate.
“The Rosti Group has performed extremely well”, explains Stig Hoffmeyer, CEO of Rosti, in an interview with the Danish news agency Direkt. “We actually managed to outperform not only our own guidance but also the expectations of Nordstjernan. The only reason why the sale didn’t come through last spring was the price, but because of the positive performance achieved in the course of the year the proceeds from a sale now are much better overall than what we would have achieved in the spring.”
Bent Carlsen, Chairman of the Board of Rosti, concurs. “The world economy has improved, and Rosti has done very well in 2009. This caused the buyer to change its mind and to pay a price that is reflective of the company’s value”, he says to Direkt.
Rosti sells a total of 5 production sites which account for approx. 70 per cent of the Group’s consolidated revenue. The divested operations have been profitable for the past five years, and the outlook for the future is even better.
Stig Hoffmeyer: “We have seen a considerable intake of new orders in 2009, so as far as orders are concerned the outlook for the coming years is fine and we hold a favourable position”. He continues: “Thanks to increasing efficiencies and cost savings Rosti Technical Plastics has been posting earnings growth in the past twelve months despite a decline in revenue, and more operating efficiencies are forecast for 2010”.
In addition to taking over the five production sites, Nordstjernan has been granted an option to buy Rosti’s three production sites in the
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The operations divested by Rosti Technical Plastics posted EUR 112 million in revenue for the past twelve months and an EBIT in 2008 of DKK 54 million.
Rosti and Nordstjernan have not announced the selling price, but in the summer of 2008 the Danish bank Jyske Bank made a calculation of the price that A.P. Møller-Maersk would be likely to get for the entire Rosti Group and found it to be in the region of DKK 500 million, including the remaining five companies.
The transaction is scheduled for completion in Q1 of 2010 subject to the approval of the competition authorities.
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http://finans.tv2.dk/nyheder/article.php?id=26811293