The largest envelope company in Europe established
10/18/1999 7:00 AM EST
Bong Ljungdahl and Bauwens/R. Schmidt to be merged
Today Bong Ljungdahl AB and Mr. Michael Wolf Bauwens, the owner of the
Wolf-Bauwens/R. Schmidt Group ("Bauwens"), have agreed in principle to a
merger between the two Groups. The parties plan to effect the merger
through an acquisition of Bauwens by Bong. In forming the new Group, Mr.
Wolf-Bauwens will receive a combination of newly issued shares in Bong
Ljungdahl and a payment in cash for his shares in Bauwens.
The merger between Bongs and Bauwens will create the largest producer of
envelopes in Europe with a yearly production of more than 16 billion
envelopes and a turnover of approximately SEK 2.5 billion. The new company
will hold a European market leadership position and a total market share
of approximately 16% with a very strong position in Northern Europe. The
number of employees will be around 1800.
In the new constellation Mr. Wolf-Bauwens will be the largest shareholder
in Bong and is also to be nominated as member of the Board of Directors in
Bong Ljungdahl.
The Board of Directors in Bong Ljungdahl has agreed in principle to the
terms of the merger and the main shareholders are positive to the
transaction.
The merger is subject to conditions including a satisfactory due
diligence, execution of a Share Purchase Agreement, approval from the
Shareholders in Bong regarding the directed issue to Mr. Wolf-Bauwens and
the approval of the relevant competition authorities.
Bauwens is the second largest producer of envelopes in Europe, an all-
rounder in the area of mail-related products and has production facilities
in Germany (3 units), Ireland, UK, Finland and Belgium. Bauwens is the
market leader in Germany and has a strong presence in UK, Ireland, Belgium
and Holland.
Bong, which is quoted on the Stockholm Stock Exchange OTC-list, is the
fourth largest producer of envelopes in Europe. Bong is well known as a
high quality supplier of all forms of standard and bespoke envelopes. Bong
has a strong market presence in the Nordic countries as well as in the
Baltic States, Poland and Belgium. The production facilities are located
in Sweden (2 units), Norway, Denmark, Finland, Poland, Estonia and
Belgium.
Bong and Bauwens complement each other both geographic and product wise
and the overlaps are few. The new group constitutes an excellent platform
for further growth in the European envelope market.
The intention is to complete the merger early year 2000.
Alfred Berg Fondkommission AB and ABN Amro Corporate Finance (Deutschland)
GmbH have acted as advisors in connection with the merger.
Kristianstad, October 18, 1999
BONG LJUNGDAHL AB
Lennart Pihl
For enquires:
Lennart Pihl, CEO Bong Ljungdahl: +46-44-20 70 50 mobile 0705-94 68 66