The largest envelope company in
Europe established
Bong Ljungdahl and Bauwens/R. Schmidt to be merged
Today Bong Ljungdahl AB and Mr. Michael Wolf Bauwens, the owner of the Wolf-Bauwens/R. Schmidt Group ("Bauwens"), have agreed in principle to a merger between the two Groups. The parties plan to effect the merger through an acquisition of Bauwens by Bong. In forming the new Group, Mr. Wolf-Bauwens will receive a combination of newly issued shares in Bong Ljungdahl and a payment in cash for his shares in Bauwens.
The merger between Bongs and Bauwens will create the largest producer of envelopes in Europe with a yearly production of more than 16 billion envelopes and a turnover of approximately SEK 2.5 billion. The new company will hold a European market leadership position and a total market share of approximately 16% with a very strong position in Northern Europe. The number of employees will be around 1800.In the new constellation Mr. Wolf-Bauwens will be the largest shareholder in Bong and is also to be nominated as member of the Board of Directors in Bong Ljungdahl.The Board of Directors in Bong Ljungdahl has agreed in principle to the terms of the merger and the main shareholders are positive to the transaction.
The merger is subject to conditions including a satisfactory due diligence, execution of a Share Purchase Agreement, approval from the Shareholders in Bong regarding the directed issue to Mr. Wolf-Bauwens and the approval of the relevant competition authorities.
Bauwens is the second largest producer of envelopes in Europe, an all-rounder in the area of mail-related products and has production facilities in Germany (3 units), Ireland, UK, Finland and Belgium. Bauwens is the market leader in Germany and has a strong presence in UK, Ireland, Belgium and Holland.
Bong, which is quoted on the Stockholm Stock Exchange OTC-list, is the fourth largest producer of envelopes in Europe. Bong is well known as a high quality supplier of all forms of standard and bespoke envelopes. Bong has a strong market presence in the Nordic countries as well as in the Baltic States, Poland and Belgium. The production facilities are located in Sweden (2 units), Norway, Denmark, Finland, Poland, Estonia and Belgium.
Bong and Bauwens complement each other both geographic and product wise and the overlaps are few. The new group constitutes an excellent platform for further growth in the European envelope market.
The intention is to complete the merger early year 2000.
Alfred Berg Fondkommission AB and ABN Amro Corporate Finance (Deutschland) GmbH have acted as advisors in connection with the merger.
Kristianstad, October 18, 1999
BONG LJUNGDAHL AB
Lennart Pihl
For enquires:
Lennart Pihl, CEO Bong Ljungdahl: +46-44-20 70 50 mobile
0705-94 68 66
Please visit http://www.bit.se for further information
The following files are available for download:
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