KONE, Industri Kapital and the management of Paroc sell Paroc to Banc of America Equity Partners

Partek Corporation, part of the Kone Group, Industri Kapital and the management of Paroc have on 15 December 2002 signed an agreement with Banc of America Equity Partners on the sale of shares in Paroc Group Oy Ab to a Finnish holding company owned by a fund administered by Banc of America Equity Partners. The Industri Kapital 1997 Fund will sell approximately 47% and Partek approximately 38% of the shares in Paroc. The management of Paroc will have an option to continue their ownership in Paroc.
The transaction is subject i.a. to competition authority approval. The deal is expected to be finalized in early 2003.
The sale of Paroc is in line with the strategy of KONE concerning Partek. One of objectives in this strategy is to divest the non-core holdings of Partek. KONE’s share of the debt-free acquisition price is approximately EUR 75 million, including the price for the shares and the repayment of loans.
Sender:
KONE Corporation
Tapio Hakakari
Secretary to the Board of Directors
Outi-Maria Liedes
Senior Vice President,
Corporate communications & IR
For further information, please contact:
Kari Heinistö, Senior Executive Vice President, KONE Materials Handling, tel. + 358 204 55 4542
Michael Rosenlew, Director, Industri Kapital, tel. + 46 70 3789525, +46 8 6789500
Peder Biese, President and CEO, Paroc Group, tel. +358 204 55 4868
Paroc is one of the leading manufacturers of stone wool insulation products and solutions in Europe. Paroc products include building insulation, technical insulation, marine insulation, structural stone wool sandwich panels and acoustics products. Paroc’s net sales in 2001 totalled EUR 281 million (January-September 2002: EUR 206 million) and the company has 1,800 employees. Paroc’s main markets are Finland, Sweden, the Baltic countries and Poland, and it has sales companies in 13 countries.
Industri Kapital is one of the leading private equity firms in Europe with equity capital under management in excess of EUR 3 billion from Nordic, European and international institutional investors. Since its formation in 1989, Industri Kapital has, through its four funds, carried out 45 strategic investments. Industri Kapital currently has a portfolio of 25 companies with a total turnover exceeding EUR 11 billion.
KONE is a global service and engineering company that specializes in moving people and goods. The value of net sales totals EUR 5,600 million, and we employ approximately 35,000 people. KONE's B shares are listed on the Helsinki Exchanges.