Swedish industrial automation provider OEM International AB divests subsidiary

Nordic Business Report, Oct 19, 2006

NORDIC BUSINESS REPORT-19 October 2006-Swedish industrial automation provider OEM International AB divests subsidiary(C)1994-2006 M2 COMMUNICATIONS LTD http://www.m2.com

The Swedish industrial automation systems and components provider OEM International AB said on Thursday (19 October) that it has sold its subsidiary JMS Systemhydraulik AB to Specma Hydraulic AB.

JMS Systemhydraulik supplies hydraulic components and systems for the industry. It has 54 employees and reported sales of SEK157m in 2005. The company has a production plant in Boras in Sweden, and also offices in Gothenburg, Stockholm and Umea.

OEM International said that its reason for the sale is JMS Systemhydraulik's relatively small size in a large market dominated by a few major players.

The sales price of SEK120m will result in a capital gain of SEK80m.

"The sale gives OEM an additional cash injection which improves our capacity to step up our acquisition rate," said Jorgen Zahlin, CEO of OEM International.

OEM International is headquartered in Tranas in Sweden. The group comprises 23 operating companies with 541 employees in eight countries. In 2005 OEM International achieved a turnover of SEK1.52bn. The company is listed on the Stockholm Stock Exchange.

One British pound (GBP) is worth approximately 13.70 Swedish kronor (SEK).

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