Jul 1 2015
Swedish Opcon sells compressor and Waste Heat Recovery business to Chinese group for SEK 400 million
Opcon, the energy and environmental technology Group, has signed a share purchase agreement concerning the sale of the Group’s business in compressor technology and Waste Heat Recovery. The deal includes the newly formed holding company, Opcon Compressor Technology AB, and the subsidiaries Svenska Rotor Maskiner AB, Opcon Energy System AB as well as 48.9796% of the shares in the joint venture in China, Fujian Opcon Energy Technology Co. Ltd. The acquisition also includes all the intellectual property rights relating to compressor technology and Opcon Powerbox. The Opcon brand will also be transferred but will continue to be used by the Opcon Group during a transition period. The purchase amount is set at SEK 400 million. The companies have around 45 employees and had a joint sales turnover of around SEK 71 million in 2014 with an operating profit EBITDA of around SEK 9 million.
The purchase amount, following the performance of due diligence based on the accounts dated 31 March 2015, is set at SEK 400 million. 15% of the purchase amount shall be paid in cash within 20 days of the agreement coming into effect through the approval given by an extra general meeting of Opcon shareholders and by the investment committee of the investment company that controls the buyer. The remaining 85% of the purchase amount shall be paid in cash upon the closing of the deal, which is expected to be 30 September 2015, when the buyer will gain
ownership of the transferred shares.
The share purchase agreement has been signed with the Chinese investment fund, Shanghai XingXueKang Investment Partnership, which is controlled by the Chinese investment company, Fujian XingXueXuanYuan Capital Management Co., Ltd.
This investment company was set up by Fujian Snowman Co. Ltd., which has a 29% stake,
and other Chinese investors.
The agreement is conditional on acceptance being given by an extra meeting of Opcon AB shareholders and on acceptance by the investment committee of Fujian XingXueXuanYuan Capital Management Co. Ltd.
Snowman is Opcon’s largest regular customer and the second largest owner of Opcon, controlling 17% of the capital and voting rights.
The remaining part of the Group will have around 100 employees in Sweden, Germany and the UK with a strong focus on bioenergy. Ipcon has now initiated a full review of it’s organizational structure and strategy,” says Rolf Hasselström, President and CEO of Opcon.
Svenska Rotor Maskiner AB (SRM) was founded in 1908 as AB Ljungströms Ångturbin and is the inventor of the screw compressor, among other achievements. SRM is Opcon’s center-of-excellence for compressor technology and holds all intellectual property related to the compressor technology that has been developed by it since the 1930s. Opcon Energy Systems AB is the operating company in the compressor and waste heat recovery part of Opcon’s business and the owner of the Opcon Powerbox technology for generating electricity from low -temperature waste heat.
Opcon remaining part is strongly focused on bioenergy
Opcon will receive SEK 400 million in cash from the sale, which will strengthen the company’s financial position considerably.
The remaining part of the Group will have around 100 employees in Sweden, Germany and the UK with a strong focus on bioenergy. As a result we have initiated a full review of Opcon’s organizational structure and strategy,” says Rolf Hasselström, President and CEO of Opcon.
More info about Opcon www.opcon.se
Opcon core business including the Powerbox, electricity production from low temperature heat, now sold to China for 400 MSEK (43 M€)