Perlos signs a memorandum of understanding with Ratos to establish a joint venture company serving the healthcare industry

17.7.2006- Perlos Corporation has signed a Memorandum of Understanding with Swedish private equity investor Ratos AB, to establish a new company serving the healthcare industry. According to the Memorandum of Understanding, all Perlos’ Healthcare business unit’s current business assets, including the production facilities in Kontiolahti, Finland and Sunderland, United Kingdom, will be sold to the new company. The net sales of Perlos Healthcare business unit amounted to EUR 52.6 million in 2005 and it employs currently circa 500 people.

According to the Memorandum of Understanding, the cash and debt free purchase price of the Healthcare business by the new company will be EUR 67 million. The intention is to sign a definite sale and purchase agreement in the near future. The closing of the deal is expected to take place in the third quarter of 2006.

Perlos will make a maximum of EUR 9 million equity investment in the new company, representing approximately a 20 per cent shareholding. Perlos Healthcare business unit’s acting management, headed by Jouni Pohjonen, will continue with the new company and acquire approximately a 2% shareholding. Ratos’ shareholding of the new company will be approximately 78%. The current personnel of Perlos Healthcare will continue working for the new company and all their employment agreements and benefits will be transferred.

The intention of Ratos and Perlos is to invest in the growth of the new company and build it into a global player through both organic growth and acquisitions.

- The Healthcare business area has great potential for the future. However, with Perlos’ core business area in telecommunications and electronics growing very rapidly, there are not enough resources in place to invest in the further development opportunities of the Healthcare business. This transaction enables the Healthcare business to implement its growth strategy, as Ratos offers a strong financial base and possibilities to invest in further growth, says Perlos CEO and President Isto Hantila.

- We see a very bright future and exciting potential for the new company, says Ratos’s CEO Arne Karlsson. - The industry’s strong growth and profitability, coupled with its fragmented structure, offer many interesting opportunities. We are also highly optimistic about the partnership formed today with Perlos.

- This arrangement offers an interesting opportunity for further development of the Healthcare business. The management is highly committed to working together with Ratos and Perlos, says Jouni Pohjonen, President of Perlos Healthcare.

PERLOS CORPORATION
Isto Hantila
CEO and President


PERLOS IN BRIEF

Perlos Corporation is a global design and manufacturing partner for the telecommunications and healthcare industries. The service offering covers the whole product life cycle from industrial design to manufacturing, logistics and new product versions. The production facilities are located in Asia, Europe and the Americas and the company is headquartered in Finland. In 2005, Perlos Corporation’s net sales amounted to EUR 666,8 million. The company employs over 13,000 people worldwide. Perlos share (POS1V) is traded on the Helsinki Stock Exchange.

Perlos Healthcare develops and manufactures drug delivery and disease management devices, birth control systems and point-of-care diagnostics devices and supplies for a wide area of healthcare professionals. For personal care markets, it offers solutions in vision care, dental care, drug dispensing and packaging solutions. In 2005, the net sales of Perlos Healthcare customer group amounted to EUR 52.6 million.

RATOS IN BRIEF

Ratos is a listed private equity company. The business concept is to maximise shareholder value over time by investing in, developing and divesting primarily unlisted companies. Ratos thus offers stock market players a unique investment opportunity. The equity of Ratos’s investments is approximately SEK 11 billion. Ratos’s holdings include Alimak Hek, Arcus, Anticimex, Atle Industri, Bisnode, Bluegarden, BTJ Group, Camfil, DIAB, Gadelius, GS-Hydro, Haendig, Haglofs, HL Display, Hägglunds Drives, Industri Kapital, Inwido, Lindab, Overseas Telecom and Superfos.

Contact Information

Jouni Pohjonen

President, Healthcare

Perlos Corporation

Contact via E-mail