Transmission engineering to funds managed by CapMan and to the management of the performance unit
Fortum Corporation and CapMan Capital Management Oy have today signed a contract on the sale of Transmission engineering owned by Fortum (the entire share capital of IVO Transmission Engineering Ltd). The unit designs and constructs power transmission and distribution networks and wireless and fixed telecommunications networks. According to the contract, the purchaser is a new company established by an equity fund managed by CapMan and the management of the Transmission engineering.
This deal reflects Fortum’s strategy, according to which the company focuses more and more on power generation and special expertise in oil refining, and on the marketing of energy products in the Nordic markets and the Baltic Rim. Fortum expects that the new owner will be able to use IVO Transmission Engineering’s expertise and growth potential, which can be found in the services of the changing energy business and telecommunication services in northern Europe and elsewhere in the world.
The basic contract price is EUR 32.5 million, and the deal will yield some sales profit. The development of the business in the next few years will influence the final price and sales profit. The acquisition requires the approval of the competition authorities.
In 2000, the net sales of Transmission engineering amounted to almost EUR 200 million. The business employs about 1,500 people, and somewhat less than 600 of them work for foreign subsidiaries. The operations focus on the Nordic countries, but the company has significant business elsewhere in Europe, south-east Asia and Africa as well.
CapMan Capital Management Oy is one of the leading equity investors in the Nordic countries. The funds managed by CapMan have invested in approximately 100 companies in Finland and elsewhere in Europe and have exited 26 companies. CapMan, together with Access Capital Partners, its affiliate company investing in European equity funds, manages the total equity of about EUR 1,150 million.
Eero Aittola, Group Executive Vice President, Fortum Corporation, tel. +358 10 45 24234
Mauri Hattunen, Senior Advisor, Fortum Corporation, tel. +358 10 452 9210