Linking up Combining strengths

NEWS

Combining strengths

Solvay and INEOS join forces to create world-class PVC producer

Solvay and INEOS have signed a Letter of Intent (LOI) to combine their European chlorvinyls activities in a proposed 50-50 joint venture. The combination would form a polyvinyl chloride (PVC) producer ranking among the top three worldwide.

The joint venture would have pro-forma net sales of €4.3 billion and REBITDA of €257 million, based on 2012 figures. The combined business would have around 5650 employees in 9 countries and would pool each company’s assets across the entire chlorvinyls chain. This includes PVC, which is the third most-used plastic in the world, caustic soda and chlorine derivatives. RusVinyl, Solvay’s Russian joint venture in chlorvinyls with Sibur, is excluded from the transaction. “The joint venture will improve the competitiveness of its operations in a very challenging environment regarding feedstock and energy costs in Europe. We are convinced that this is the right project to secure, for the long term, the development of Solvay’s European chlorvinyls activities, of its employees and its plants,” says Jean-Pierre Clamadieu, CEO of Solvay. Visit: www.solvay.com

Saab acquires TIKAB

Defence and security company Saab acquires TIKAB, a Swedish technical information provider. The acquisition expands Saab’s service portfolio and means Saab can offer a more complete range of technical services, further strengthening the company’s competitiveness as a provider of support solutions.

Saab’s business area Support and Services has signed an agreement to acquire TIKAB – a company that produces and supplies technical documentation for the civilian and military market. The Support and Services business area has a strong position in the global market for integrated support solutions. Solutions include technical publications and interactive training tools and the acquisition of TIKAB further strengthens Saab’s position in the market.

“With this acquisition, we can offer new and existing customers a wider portfolio of services and a complete range of integrated support solutions. There are clear synergies between TIKAB and Saab’s operations in which we can utilise each other’s expertise to strengthen the competitiveness of our offering to achieve growth,” says Lars-Erik Wige, senior vice-president and head of business area Support and Services. Visit: www.saabgroup.com

Funkwerk AG sells Microsyst Systemelectronic GmbH

Funkwerk AG, Kölleda, has sold its 100% share in subsidiary Microsyst Systemelectronic GmbH (Microsyst GmbH), Weiden/Bavaria, in a management buyout to the company’s authorised signatory.

The main segment of Microsyst GmbH, a manufacturer and supplier of display systems for industrial applications, is focused on large-format displays used for processes such as assembly lines in the automobile industry. Generating revenues of around €7 million with a workforce of some 40 staff in 2012, the Bavarian company also specialises in solutions for paperless order picking.

Over the last two years, Funkwerk AG has implemented a comprehensive restructuring programme designed to increase its efficiency and in the process has shed several peripheral sectors which are not considered part of its core business. As a result, Funkwerk now focuses entirely on its two strategic segments Traffic & Control Communication (TCC) and Security Communication (SC). Visit: www.funkwerk.com

Fagerhult acquires I-Valo Oy

IN order to further strengthen the Fagerhult Group’s position in the European lighting market as well as adding a complementary product range, Fagerhult has acquired 100% of the shares of I-Valo Oy based in Iittala, Finland.

I-Valo has 60 employees and manufactures lighting fixtures and solutions primarily for industrial applications located in very demanding conditions. Example application areas include paper & pulp, mining & minerals & metal and (bio-) energy industries.

“Our strategy is to become a clear leader in the European lighting industry. With this acquisition we will strengthen our Nordic base while also gaining access to a product leader within the Industrial applications segment. We expect I-Valo to grow within its current attractive niche, but also provide a platform to grow into adjacent lighting segments that also require lighting solutions operating in very demanding conditions - such as the marine & offshore segment,” comments Johan Hjertonsson CEO Fagerhult. Visit: www.fagerhult.se

LINKINGUP

Kalmar acquires Spanish Mareiport

Kalmar, part of Cargotec, has acquired total ownership in the Spanish crane refurbishment and maintenance service company Mareiport SA. The acquisition is a strategic step for Kalmar to become a major global crane refurbishment and services provider. Kalmar has been a minority shareholder with 30% ownership in the company since 2007. Mareiport is a privately owned company established in 1985 in Algeciras, Spain. The company has been providing maintenance services for ports and terminals and refurbishment and heightening services for a large variety of different cranes, including quay cranes, rubber tyred gantry cranes, bulk cranes and large shipyard cranes especially in the Mediterranean area. In 2012, Mareiport’s sales totalled approximately €20 million and it employs approximately 250 people. “By acquiring full ownership in Mareiport, Kalmar will expand its crane services and refurbishment capabilities especially in southern Europe, Middle East and Africa and together with our existing competences in central Europe, South East Asia and east coast USA we will be able to respond to the growing customer needs globally,” says Olli Isotalo, president of Kalmar. Visit: www.kalmarglobal.com

Dassault Systèmes to acquire AprisoTurkey

Dassault Systèmes has announced its intent to acquire Apriso, a leading provider of manufacturing software solutions, for approximately $205 million. The acquisition of the Long Beach, California-based Apriso enriches the global manufacturing operations management capabilities of the 3DEXPERIENCE platform.

Apriso expands Dassault Systèmes’ 3DEXPERIENCE footprint across multiple industries, such as consumer goods, packaged goods, high tech, life sciences, transportation & mobility, aerospace & defense and industrial equipment.

Apriso will be integrated with and expand Dassault Systèmes’ DELMIA application portfolio and the 3DEXPERIENCE platform’s virtual+reality capabilities. Apriso’s solutions synchronise global manufacturing networks, offering real-time visibility and control over the business processes performed by plants and suppliers. These solutions establish a common set of operational standards that can be managed holistically, on a global basis, while continuously improving and meeting local market and customer needs. By integrating these solutions with the 3DEXPERIENCE platform, customers will have a comprehensive view of their business, from idea to design, to production and global product availability for consumers worldwide. Visit: www.3ds.com

Acquisition to cement Arla’s Russian ambitions

After more than five successful years in Russia, Arla has purchased the last 25% of Artis, the joint venture that controls its Russian activities. The former owner, Mike Lyasko, will continue to head Arla’s activities in the Russian market.

The acquisition makes the Russian company a wholly-owned Arla subsidiary. Russia is one of Arla’s three strategic growth markets, and will be delivering a significant share of the company’s growth up to 2017. The goal is a threefold increase in revenue from today’s level of approximately DKK 600 million.“The acquisition cements our ambitions in Russia. Under the agreement from 2007, we have always had the option to acquire the remaining holding, and in view of our success in the Russian market, both parties considered this to be the right time,” says Hans Christensen, senior vice-president in Consumer International with responsibility for Russia and North America.

Artis was a distribution company, headquartered in St. Petersburg, when Arla acquired a 75% stake in 2007 and the name was changed to Arla Foods Artis. Since then, the company has expanded into a full business with 150 employees. Visit: www.arlafoods.com

Ovako purchases operations of BE Group in China

Ovako has signed an agreement to acquire the operations of BE Group in China. This accelerates its plan to establish a service centre in China. The objective is to support Ovako’s customers in Asia with specific niche products.

“With the acquisition of BE Group’s operations in China we are taking the step of establishing Ovako in Asia. This is an important market for us and for our customers and we hope this will enable us to provide them with even better support. The acquisition is also in line with our strategy to establish Ovako as a premium provider of engineering steel and to broaden our international position in selected niche areas,” says Tom Erixon, president and CEO Ovako.

The purchase price corresponds essentially to the net assets of the operation in China and will have a marginal impact on Ovako’s accounts. The purchase price is estimated at approximately SEK 10 million. Visit: www.ovako.com