Addtech Acquires Mediplast AB and Prepares for a Separate Listing of the Life Science Business Area On NASDAQ OMX Stockholm

Regulatory News:

Life Science, a business area in the Addtech Group (STO:ADDTB), has today signed an agreement to acquire all shares in Mediplast AB.

Mediplast AB is the parent company of the Mediplast Group and is a leading Nordic supplier of medical technology equipment and consumables. The company has its head offices in Malmö and pursues operations via its own trading companies in Sweden, Denmark, Finland, Norway and the Netherlands. Mediplast also has its own production facilities in Denmark, Finland and Italy. The company holds a strong position in the Nordic countries and markets both its own products as well as those of leading suppliers in the areas of surgery, intensive care, thorax/neuro, ENT and ostomy care. Mediplast’s customers operate in both the private and public sectors. In the 2014 financial year, the Mediplast Group generated sales totalling approximately SEK 465 million, an operating profit before amortisation of intangible assets (EBITA) of around SEK 45 million and had roughly 120 employees.

The acquisition of Mediplast marks an important entry into the field of medical technology for the Life Science business area, and it will form the basis of the newly established Medical Technology business unit. The acquisition is expected to take effect at the beginning of July. The total purchase consideration of the acquisition of Mediplast amounts to approximately SEK 480 million. It is estimated that the acquisition will have a positive effect on Addtech’s earnings per share during the current financial year.

The Board of Directors of Addtech has decided to initiate the process of a separate listing on NASDAQ OMX Stockholm by distributing the shares in the Life Science’s operations to Addtech’s shareholders. The ambition is to carry out the listing in the first half of 2016.

During the course of the past ten years that Life Science has been part of Addtech, the business area has developed and broadened its product range, while increasing its sales from around SEK 450 million to roughly SEK 1,050 million, with healthy profitability. Growth is a result of a combination of solid organic growth and acquisitions of profitable companies. Life Science is today one of the leading independent suppliers in the Nordic region on its markets and the addition of Mediplast will mean that sales will exceed SEK 1,500 million.

"The motive for a separate listing is that Life Science has achieved a size and level of profitability that makes the business attractive as an independent, listed company. This was an idea already before Addtech was distributed to the shareholders of the Bergman & Beving Group back in 2001. As a listed company, Life Science will be able to continue to grow via new operations and acquisitions,” says Johan Sjö, Addtech’s President and CEO.

Of the total purchase consideration for Mediplast, roughly 50 percent will be paid in cash and 50 percent through an issue in kind in the parent company that owns the companies in Addtech’s Life Science business area. The current principal owner of the Mediplast Group, Roos Gruppen AB, will together with two Mediplast managers own 15 percent in the parent company of the Life Science business.

"I’m very positive about this deal and look forward to having the opportunity to continue following Mediplast’s development in this new structure. Life Science is in an excellent position to continue to have good growth with profitability,” says Håkan Roos, Chairman of Roos Gruppen AB.

Lars-Erik Rydell, Managing Director of the Mediplast Group, comments: "I’m extremely satisfied with Addtech as new owner, as the companies share the same values and together with Mediplast’s personnel I look forward to our future cooperation, which will enable continued expansion in the field of medical technology.”

Stockholm, 4 June, 2015

Addtech AB (publ)

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