Orion tightens its belt with Noiro sale
manager/adviser, private equity investor CapMan, have agreed upon a
deal for the acquisition of Orion's cosmetics and detergent
business unit Noiro by funds managed/advised by CapMan.
Finnish healthcare specialist the Orion Corporation and its funds manager/adviser, private equity investor CapMan, have agreed upon a deal for the acquisition of Orion's cosmetics and detergent business unit Noiro by funds managed/advised by CapMan.
The price of the transaction stands at approximately €100 million, according to a statement released earlier today, to be further adjusted when closing the deal in early October. The transaction will include all the business operations and the related assets and liabilities of Noiro and its subsidiaries.
The deal will result in the formation of a new company, but the operations will continue under the name Noiro. Key figures at Noiro will become shareholders with a combined ownership of approximately 5 to 7 per cent. All the employees, approximately 850 in total, will join the new company under the current terms of employment and Pekka Rautala will continue as managing director of Noiro.
Orion says the arrangement - which is still subject to the approval of the Finnish Competition Authority - represents a significant strategic step in its bid to streamline and clarify the group structure, allowing it to concentrate its business operations clearly on pharmaceuticals and other healthcare products.
Noiro's net sales in 2002 totalled €135.3 million and operating profit €9.8 million. It is one of the biggest single investments of the funds managed/advised by CapMan, whose goal, it says, is to support Noiro in its development and internationalisation.
Noiro's activities include cosmetics, personal hygiene and hairdressing products as well as institutional cleaning, and while own brands account for over 80 per cent of the net sales it also markets Wella hair cosmetics in Finland.
In terms of research and development and manufacturing, it claims to be the largest enterprise in Scandinavia in its fields of business and is considered to have good growth opportunities in the Nordic countries, in Russia, in the Baltic countries and in Poland. In CapMan's eyes, strong brands like Lumene, which accounts for more than one-third of the net sales and almost two-thirds of exports, and steadily growing sales and profits constitute a firm basis for the further development of the company.
