PRESS RELEASE 25 November 2005
Nordic Capital becomes new owner of Permobil
Through its wholly owned subsidiary Permobil International AG, the Swedish Foundation for Technical Aid for Disabled Persons has agreed to transfer all its holdings of 75% of the shares of Permobil to Nordic Capital Fund V. The remaining 25% will be sold by Handinter Gamma AG, owned by the sons of Permobil’s founder Per Uddén, and members of the corporate management. Permobil is a world-leading producer and supplier of powered wheelchairs. This transfer of ownership signals greater growth ambitions and the company’s onward progression, providing the conditions for further expansion. The corporate management will become partners of, and remain with, the company.
Permobil, founded in 1963 by physician and inventor Per Uddén, has secured positioning as a world leader in the production and supply of powered wheelchairs for the disabled for over 40 years of operations. It has conducted uninterrupted development activity, passing a series of momentous milestones and creating new possibilities that extend to very severely disabled people. The corporation is now established on the global market through subsidiaries in locations such as the US and across much of Europe. Sales at year-end 2004 were approximately SEK 840 m, and at year-end 2005, expected staffing will be over 500 people.
Toni Weitzberg, Partner, Nordic Capital, commented: “This is a very promising segment of the healthcare sector; we will be supporting Permobil’s efforts to sharpen competitiveness. We will back Permobil’s onward expansion by building on its successful strategy in specialised powered wheelchairs and entering new markets. There are great prospects for the company to make further progress. Permobil’s strong brand will give the business the opportunity to grow on new and existing markets.”
Hans Bergh, Permobil’s CEO, continued: “We are delighted to get Nordic Capital as our new owner. They are very interested in our business and believe in our future activities. Moreover, they have got extensive experience of developing enterprises, and bring industrial expertise and financial resources. We want to grow on new markets and through product development. Over the years, the Foundation has made unparalleled efforts to develop the business, and with our new owners, we will gain new prospects to make even faster progress. Nordic Capital’s view of Permobil is very consistent with our own ambitions.”
Anders Uddén, Permobil’s Chairman and former CEO, added: “We think this is a good solution. We have traced an uninterrupted curve of high organic growth and good profitability since 1995, but we still think there is a lot left to do. We are the world’s third-largest supplier of powered wheelchairs, and we want to create an even stronger position. This new ownership enhances our prospects of doing so.”
The parties have agreed not to disclose the transaction value. The acquisition is conditional on Competition Authorities’ approval.
For more information, please contact:
Toni Weitzberg, Hans Bergh Anders Uddén
Partner, Nordic Capital, CEO, Permobil AB Chairman, Permobil AB
Tel: +46 (0)8 440 50 50 Tel: +46 (0)70 678 88 00 Tel: +46 (0)70 563 66 78
Nordic Capital is a leading private equity firm focusing on investments in the Nordic mid-market arena. The firm has a strong investment track record, an extensive network of contacts and first-hand knowledge of local industries and business practices. Since inception in 1989, Nordic Capital has invested in more than 60 Nordic-based companies operating in a range of segments and sectors. Nordic Capital’s proven investment strategy creates value by actively implementing key value drivers such as new industrial combinations, strategic repositioning and internationalization. A range of leading Nordic and international institutions are investors in Nordic Capital funds. www.nordiccapital.com.
Permobil represents innovation and technological leadership, and is a global leader in specialised wheelchairs that extend new possibilities for mobility and independence to the handicapped. The company is dedicated to enhancing the living conditions of handicapped people. Permobil has its head offices in Timrå, Sweden, and has production facilities in Sweden and the US. In 2004, the company had sales of SEK 840 m, and supplied 6,700 wheelchairs worldwide. Sales are in 20 countries, mainly through fully owned subsidiaries. Over half of sales are in the US, the remainder being in Europe and other markets. www.permobil.com