STOCK EXCHANGE RELEASE
July 30, 2008 at 2 p.m.
Outokumpu signed on April 23, 2008 an agreement to acquire the
SoGePar Group, an Italian distributor of stainless steel from its
owners, the Borromeo family. After having received regulatory
clearances the transaction has today been completed. Outokumpu paid
EUR 215 million in cash and took on debt in the company in the amount
of EUR 120 million.
The work to integrate the SoGePar units into Outokumpu's sales and
marketing organization will now go ahead at full speed. Appropriate
joint integration teams have been established to facilitate a smooth
transition. SoGePar will be consolidated into Outokumpu's accounts as
of August 1, 2008.
SoGePar currently 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.
The acquisition of SoGePar 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. Furthermore, it 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.
Following the 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 on-going service center investments,
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.
For further information, please contact:
Eero Mustala, VP - Project Communications
Tel. +358 9 421 2435, mobile +358 40 504 5146
Vice President - Investor Relations and Financial Communications
Tel. + 358 9 421 2438, mobile +358 40 515 1531