Brubakken to acquire the Lift and Machine Division of Malthus

20.04.2012

Background for the acquisition
Brubakken aspires to be a leading supplier of machines and operations-related services in the Nordic countries. There are significant synergies between lifts and forklifts. In many areas, the fundamental technology is the same, and there are numerous similarities with a view to organisation and systems. Brubakken can offer Lift & Machine a significant base of operations in Norway, ensuring Lift & Machine a unique market position, while the network that Lift & Machine already has in Sweden will pave the way for Brubakken’s Nordic ambitions. Through this acquisition Brubakken achieves significant scale with annual revenue of approximately NOK 550 million (€70.5m).

About Brubakken

Brubakken is a total supplier of forklifts and other rolling equipment. Brubakken engages in sales, rentals and operations, serving a wide range of customers from its 15 locations in Norway and Sweden. The Group currently has 120 employees and annual revenue of more than NOK 350 million (€44.9m). The largest shareholder in Brubakken is Reiten & Co Capital Partners VII L.P., a fund advised by Reiten & Co.

About Malthus Lift & Machine (MLM)

Lift & Machine is a separate division of the Malthus Group. In furtherance of its desire to focus on modular buildings and equipment for the building industry, Malthus is selling its Lift & Machine Division. MLM is a market leader in Norway, Sweden and Estonia in the sale of lifts and mobile lifts, and it serves as an agent for many exciting brands, including JLG, Omme, Hinowa, Multitel, Versalift and Ruthmann. All these brands enjoy robust positions in their segments.

MLM has a good network in Norway and Sweden, featuring locations in Oslo, Bergen, Porsgrunn, Bodø, Gävle, Malmø and Falkenberg. MLM has a total of 29 employees Norway and Sweden, and traded for NOK 158 million (€20.3m) in 2011. MLM also has a small department in Tallinn (Estonia).

Practical implementation

The acquisition is expected to take place on 1 June 2012. The transaction will be accomplished by Brubakken in Norway buying assets related to the Lift Division from Malthus AS, while in Sweden, Brubakken will acquire the shares in Malthus Lift & Maskin AB, as well as Malthus Eesti OÜ.

Lars-Erik Jonsson, CEO of MLM, will continue to head that business area and will be joining Brubakken’s executive management group. All of today’s reporting lines will be maintained for the time being. There are no plans for cut-backs as a result of the acquisition.