Duroc rushing after the deal with the Gyllenhammar – Private Business

Duroc acquires International Fibres Group (“IFG”), which manufactures polypropylenbaserad fiber and filament yarn, from Peter Gyllenhammar companies PGAB.

IFG produces about 110,000 tons of fiber and yarn per year and generates a turnover of approximately sek 1.9 billion 2015/16. The profit before tax accounted for 2015/16 of approximately sek 90 million, impacted by a bad debt loss of about sek 17 million in IFG’s u.s. subsidiary.

the Acquisition is paid in its entirety with 31.671.100 newly issued shares in Duroc class C, which can be converted to B-shares after the prospectus for the new Duroc-group registered with the Swedish financial supervisory authority, which is scheduled to happen in February 2017.

PGAB is then the previous owners at about 18 per cent of the shares in Duroc, and become in and with a transaction initially the owner of approximately 85 per cent of the share capital and votes in the enlarged Duroc. In connection with the transaction, converted all of the outstanding A-shares to B-shares.

Durocs current principal owner, and Traction has been positive to the proposal and will vote for the proposal at the meeting. In connection with the transaction refers to the Traction to acquire 1.825.000 shares in Duroc from the PGAB. After the transaction, PGAB and Traction to control 79,5, respectively, 9.8 percent of the Duroc.

the Swedish securities council has granted the PGAB exception of the mandatory bid for the remaining shares in Duroc.

“PGAB has a long-term goal is to be the principal owner of the company, and to the proportion of shares in public property shall increase”, it is called.

With the acquisition of the IFG rises Durocs concern sales figure to approximately sek 2.3 billion. The company have a strong balance sheet that gives room for expansion, both organically and through acquisitions, it says in the press release. The business is expected to generate a positive cash flow even after capital expenditures.

PGAB’s owner Peter Gyllenhammar will be proposed to the Durocs chairman of the board at the forthcoming annual general meeting. Durocs managing director John Heron will remain as ceo of the enlarged group. The management will in the near future to be supplemented with additional resources adapted to the enlarged group’s focus and needs.

After the morning’s information, Duroc share have risen around 80 percent.