Ratos: GS-Hydro acquires First Hose in UK

2015-11-02

This information is disclosed pursuant to the Swedish Securities Market Act, the Swedish Financial Instruments Trading Act or requirements stipulated in the listing agreement.

Ratos subsidiary GS-Hydro is to acquire First Hose Ltd located in Aberdeen, United Kingdom. First Hose provides hoses and hose related components for the oil and gas industry in the UK North Sea and will strengthen GS-Hydro's position as a supplier of hose management systems. The purchase price consists of an initial payment of approximately GBP 4.5m (enterprise value) plus a maximum additional purchase price of approximately GBP 1.5m. The initial purchase price is financed through equity from the owners, which entails that Ratos will initially contribute approximately GBP 4.5m (SEK 58m).

GS-Hydro is a leading global supplier of non-welded piping solutions for use in primarily hydraulic applications with high demands on fast installation, cleanliness and minimal operational shutdowns. The products are used in the marine and offshore industries as well as in land-based segments such as the pulp and paper and metals industries. First Hose was established in 1989 and it provides its customers with offshore rig supply hoses, hydraulic hoses, industrial hoses, instrumentation and fittings for the oil and gas after market in the UK North Sea. In 2014, First Hose's revenue amounted to GBP 8.4m and EBITDA to GBP 0.9m.

"GS-Hydro has a global position in non-welded piping solutions and with this acquisition the company strengthens its market position in the UK North Sea, builds a larger aftermarket business and continues to expand its hose business and offering. This will open up for new cross selling and growth opportunities in line with the company's strategy", says Susanna Campbell, CEO Ratos.

The transaction was completed on 30 October.

GS-Hydro was acquired in 2001 in conjunction with the acquisition of Atle. Since Ratos became owner of the company, GS-Hydro's sales have trebled mainly driven by geographical expansion, non-welded technology gaining market shares from traditional welded technology and strong underlying market development. Today, GS-Hydro has approximately 700 employees in 17 countries. Sales in 2014 totalled SEK 1,350m and operating profit (EBITA) amounted to SEK 100m.

For further information, please contact:
Johan Pålsson, Senior Investment Manager, +46 8 700 17 00
Elin Ljung, Head of Corporate Communications, +46 8 700 17 20

Financial calendar from Ratos:
Interim report January-September 2015	6 November 2015
Year-end report 2015	17 February 2016
Annual General Meeting 2016	14 April 2016
Interim report January-March 2016	10 May 2016

Ratos is a private equity conglomerate. The company's mission is to maximise shareholder value over time through the professional, active and responsible exercise of its ownership role in primarily unlisted medium sized Nordic companies. Ratos's holdings include AH Industries, Aibel, Arcus-Gruppen, Biolin Scientific, Bisnode, DIAB, Euromaint, GS-Hydro, Hafa Bathroom Group, HENT, HL Display, Jøtul, KVD, Ledil, Mobile Climate Control, Nebula, Speed Group and TFS. Ratos is listed on Nasdaq Stockholm and market capitalisation amounts to approximately SEK 18 billion.