Husqvarna to acquire German company
Sunday, December 31, 2006T&D Staff Report
Husqvarna, a leading producer of outdoor lawn equipment, has signed an agreement to acquire the German-based Gardena AG.
The seller is Industri Kapital, a private equity firm.
Gardena is the leader in the consumer market in Europe for irrigation products, and also has a leading position in garden tools, garden ponds and pumps, and electric garden products.
The purchase price amounts to EUR 730m (approximately SEK 6.5 billion), which includes a transfer of interest-bearing debt and pension liabilities in the amount of EUR 416m (approximately SEK 3.7 billion).
The acquisition is expected to be finalized during the first quarter of 2007, subject to approval by the relevant authorities. Gardena is expected to contribute positively to Husqvarna’s net income already in 2007.
In the fiscal year ending September 2006, the company reported sales of EUR 422m (approximately SEK 3,800m) and operating income of EUR 54m (approximately SEK 486m).
About half of sales refer to Germany and neighboring countries, and the remainder mainly to other European markets.
Gardena’s products are sold in more than 80 countries. Irrigation products account for more than two thirds of sales. Production is based in Germany and the Czech Republic, and the company has approximately 2,900 employees.
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