February 9, 2005
ASPO CHEMICALS GROWS THROUGH ACQUISITION
Aspokem, a subsidiary of Aspo Plc, has agreed to acquire the operations of the Norwegian Pemco concerning several market areas. The agreement calls for Aspokem to acquire Pemco's plastics and chemicals operations in Latvia, Lithuania, Ukraine and Byelorussia. Moreover, the majority of the stock of Pemco Specialities AB operating in Sweden is to be transferred to Aspokem. The total net sales of the transferred business totaled EUR 8 million in 2004 and the financial performance was profitable. The acquisition is conditional and expected to be finalized during the first quarter of 2005. The final purchase price will be specified later.
The transaction is expected to have a positive impact on Aspokem's earnings both in the short-term and long-term. "The Pemco transaction is an important step for Aspokem. We will gain a permanent foothold in Scandinavia and we will be able to serve customers in the area with the whole Aspokem product range", says Aspokem's Managing Director Jari Ranne. "In the Eastern markets this move will bolster our organization and our product range will increase substantially."
"Aspo has increased its presence in the Eastern markets decisively during the last ten years, proceeding first in small steps in the Baltic states and later elsewhere. This strategy has enabled us to keep the risks under control. The Pemco transaction will strengthen the position of Ukraine, our newest market, and opens Byelorussia as a new market area", says Aspo's CEO Gustav Nyberg.
The Aspo Chemicals Division consists of Aspokem and its subsidiaries. They distribute, store and market chemicals and plastics in Finland, Estonia, Latvia, Lithuania, Russia and Ukraine. The division engages in processing activities in Finland and Estonia. Aspokem is also engaged in East-West chemical trading. The Aspokem Group's net sales in 2003 totaled EUR 57.9 million and the operating profit EUR 2.6 million.
For more information contact
Gustav Nyberg, CEO
+358 9 7595 256, +358 40 503 6420
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