Outokumpu steps up its service capability by ac...
STOCK EXCHANGE RELEASE
April 23, 2008 at 12.00 pm
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Outokumpu has today signed an agreement whereby it will acquire the
SoGePar Group, an Italian distributor of stainless steel from its
current owners, the Borromeo family. Outokumpu will pay EUR 195
million in cash and take on debt in the company in the amount of EUR
140 million. The transaction is expected to be completed by the end
of the second quarter after regulatory clearances and satisfaction of
other customary closing conditions.
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SoGePar operates stainless steel service centers in Castelleone in
Italy and in Rotherham in the UK . Additionally SoGePar has stock
operations in Italy, the UK, Belgium, Finland, France and Ireland ,
as well as a commercial office in Germany and a representative office
in Turkey. Sales of the SoGePar Group in 2007 amounted to EUR 560
million, operating profit to EUR 44 million and deliveries to 134 000
tons.
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Says Deputy CEO Karri Kaitue, "This transaction enables Outokumpu to
better serve its customers through the expanded service center
network, expand its customer base and positively develop end-user and
project sales which in turn should bring more stability. The
acquisition is a determined step towards Outokumpu's strategic
ambition of building a more stable and profitable business model for
the Group."
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Furthermore, the acquisition of SoGePar will significantly strengthen
Outokumpu's position in stainless steel distribution in Italy, which,
together with Germany, is the largest market for stainless steel in
Europe.
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Says Vitaliano Borromeo, the Managing Director of SoGePar Group, "We
believe that this transaction gives significant new opportunities for
us and our customers as we become a part of a strong and integrated
stainless steel group. Outokumpu's high technological know-how and
expertise in special grades are an added attraction."
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As a result of this transaction the earlier announced EUR 70 million
investment to expand Outokumpu's current stock and processing
operations in Italy can now be avoided. The SoGePar operations will
eventually be integrated with Outokumpu's service center network. The
current SoGePar operational management will continue in their posts.
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Due to this acquisition Outokumpu's Stock & Processing capacity in
Italy and the UK will be in excess of 240 000 tons. In total, with
the SoGePar acquisition and the service center investments announced
recently, Outokumpu's global annual stock and processing capacity
will increase from the current 300 000 tons to in excess of 740 000
tons by 2010.
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SUMMA Corporate Finance is a financial advisor of Outokumpu in the
transaction.
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For further information, please contact:
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Karri Kaitue, Deputy CEO
Tel. +358 9 421 5506
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Eero Mustala, VP - Project Communications
Tel. +358 9 421 2435, mobile +358 40 504 5146
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OUTOKUMPU OYJ
Corporate Management
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Ingela Ulfves
Vice President - Investor Relations and Financial Communications
Tel. + 358 9 421 2438, mobile +358 40 515 1531, fax +358 9 421 2125
E-mail: ingela.ulfves@outokumpu.com
www.outokumpu.com
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