European private equity investor Triton has acquired a majority stake in Ovako, a Nordic steelmaker.
The firm has acquired all shares in Ovako divisions producing bars, chromed bars, tubes and rings, as well as components for the vehicle and general engineering industries.
The operations of the acquired companies – consisting of 12 production units mainly in Sweden and Finland, and six sales offices in Europe and North America – will continue operating under the Ovako brand. The transaction does not include the Ovako division manufacturing long wire steel products such as wire rods and PC stands.
The turnover of the units acquired by Triton is estimated at €850m for 2010, with 3,000 employees and a production capacity of 1.2 million tonnes.
Ovako president and CEO Jarmo Tonteri said, “The new Ovako is a structurally stable company that returns good profitability over business cycles. The new owner will provide us with the financial strength we have been lacking during the financial turmoil of the last couple of years.
“This gives us an opportunity to focus on maintaining a leading position in Europe’s special steel markets and even a globally strong market position for selected niche products, such as steel for roller bearing applications. Our capability to grow, both organically and possibly through acquisitions, will also be much better,” he added.
Specialising in the Nordic and German-speaking regions, Triton has €4bn under management. In March, the firm partnered with US firm KKR in the €850m acquisition of Nordic hospitals and nursing care provider Ambea.
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