Aktieselskabet Schouw & Co.
Grene to merge with Dutch peer Kramp

Aktieselskabet Schouw & Co. 

29.08.2013 08:33

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Schouw & Co. has agreed with the owners of Dutch company Kramp to merge Grene
and Kramp. Schouw & Co. will contribute the wholly owned subsidiary P. Grene
A/S and will have a 20% ownership interest in the merged company. As is
customary procedure in such transactions, the agreement is subject to approval
by the relevant authorities. 

Grene and Kramp are two successful businesses that complement each other in
terms of both products and markets. Grene and Kramp already operate a joint
venture in Russia. The mer­ger will facilitate a number of important synergies
and will strengthen the combined company's market offering. 

Employing some 1,500 people, Kramp reported revenue of DKK 3.0 billion and
EBITDA of DKK 380 million in 2012. For 2013, the current Kramp business expects
to increase revenue and EBITDA. See the attached press release for more
information about Grene and Kramp. 

As a result of the merger, Grene will no longer be included in the
consolidation of the Schouw & Co. financial statements. This means that for
2013, Grene's revenue (of approximately DKK 1.4 billion) and EBIT (DKK 75-85
million) will no longer be included in the consolidated full-year guidance.
Instead, Grene will be recognised under 'Discontinued operations' until the
closing date. With closing expected before the end of the year, profit from
discontinued operations, which is stated after tax, will for 2013 include the
profit or loss from Grene until the closing date plus an accounting profit to
be computed when ownership is transferred to Kramp. With closing anticipated to
take place in the fourth quarter of 2013, profit from discontinued operations
is expected to be in the region of DKK 250 million. 

From the date of closing, the overall business will be recognised as a share of
profit after tax from associates and will thus not be recognised in the
consolidated revenue and EBIT of the Schouw & Co. Group. The recognised profit
will be subject to additional depreciation due to the accounting treatment of
any purchase price adjustment. Any such adjustment will have the greatest
effect in the initial year and will expectedly decline to a modest amount, but
the final amounts have yet to be computed. 

Schouw & Co. expects to provide additional information about the financial
consequences in its interim report for the third quarter, which is scheduled
for release on November 7, 2013. 

Aktieselskabet Schouw & Co.

Jørn Ankær Thomsen      Jens Bjerg Sørensen
Chairman                         President

Schouw & Co. will be hosting a conference call (in Danish) for analysts,
members of the press and other interested parties on Thursday, August 29, 2013
at 10.30. Call +45 32 71 47 68, pin 81823887#, to attend the conference call. 

Questions relating to the above should be directed to Jens Bjerg Sørensen,
President, on tel. +45 8611 2222.
News Source: NASDAQ OMX



29.08.2013 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

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Language:     English
Company:      Aktieselskabet Schouw & Co.
              
               
              Denmark
Phone:        
Fax:          
E-mail:       
Internet:     
ISIN:         DK0010253921
WKN:          
 
End of Announcement                             DGAP News-Service
 
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