(Updates with additional detail, CEO comment)
OSLO (Thomson Financial) - Kongsberg Automotive Holding ASA (KOA) said it is
to acquire the entire automotive activities of New York-listed Teleflex for 560
mln usd on a cash and debt free basis.
KOA said the acquisition is to be fully loan financed by DnB NOR and Nordea,
and that the firm will issue shares worth 700 mln nkr "to ensure satisfactory
financial flexibility going forward".
The deal is expected to close before the end of the year, pending regulatory
and other approvals, KOA said.
The operations being acquired by KOA are called "Global Motion Systems"
(GMS), and specialise in the development and production of vehicle gear shift,
seat comfort and fluid systems.
GMS employs about 8,000 people across 16 production facilities in North and
South America, 13 factories in Europe and five factories in Asia.
In 2006 GMS posted EBITDA of 82 mln usd on sales of 855 mln.
KOA's chief executive, Olav Volldal described the acquisition as a "big step
forward" for Kongsberg Automotive.
"This business has been on our acquisition target list since 1998," he said,
pointing out that the combined operations will become a 1.5 bln usd company that
supplies many of the world's largest car manufacturers.
"There is an exceptionally strong industrial fit between GMS and Kongsberg
Automotive in terms of product platforms and customer base," he added.
alastair.reed@thomson.com
ar/ra/ar/ejb
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