The Enterprise Investment Fund has concluded an agreement on the acquisition of a 40% interest in Promens hf. The acquisition price is ISK 6.6 billion and includes an increase in Promens share capital which will be used to reduce debts and for investments. Among the projects in progress at Promens is the enlargement of the company’s plant in Dalvík, Iceland. The acquisition will reduce the holdings of Horn Investment Company hf. in Promens from 99% to 59%. The owners have plans to list Promens in the stock market in two to three years’ time.
Promens is a leading global plastics manufacturer operating 45 plants in 19 countries. The company manufactures a wide range of products, including packaging for food, cosmetics, and pharmaceuticals, in addition to components for automobiles, agricultural machinery and heavy machinery. Promens serves enterprises in a number of industries, including food processing, chemicals and pharmaceuticals and the automotive and electronics industries. The company’s turnover in 2010 was ISK 94.6 billion (EUR 584 million), and profit after taxes amounted to ISK 1.9 billion (EUR 11.7 million). Promens has 4,200 employees, including 80 in Iceland, where the company operates two manufacturing facilities, Promens Dalvik and Promens Tempra. The operation of the two Icelandic companies has been successful in the past months and years. Promens’ roots can be traced to the foundation of Sæplast in Dalvík in 1984, where the company still runs a successful plant, Promens Dalvik, with an average workforce of 40-50 employees. Work is currently in progress on enlarging the Dalvik plant in order to meet steadily increasing demand for the company’s products. Following the acquisition by the Enterprise Investment Fund, the Fund will own 40% of the shares in Promens, while Horn Investment Company will own 59% and key employees just short of 1%. The acquisition is subject to due diligence.
“Promens is a powerful company and has shown significant success in strengthening its operations following the economic difficulties in Europe in 2008 and 2009. The company offers a very wide range of products produced in its manufacturing facilities across the world, including Iceland. There are good opportunities in the markets where Promens operates, and the company will undoubtedly be regarded as an attractive investment opportunity when it is listed in the stock market. We will work closely with other investors, the staff and management on strengthening the company’s operations still further,” says Finnbogi Jónsson, Managing Director of the Enterprise Investment Fund.
Hermann Már Thórisson, Managing Director of Horn Investment Company: “It is a very positive development for us to have the Iceland Enterprise Fund aboard as a Promens shareholder. Strong ownership backing will improve the company’s potential to take the operations forward in the markets where the company operates. Promens is an international company with a strong workforce and management commanding extensive knowledge and experience in their field and we are looking forward to an exciting time at the company.”
Ragnhildur Geirsdóttir, Promens CEO: “Strong ownership is very important for an international company like Promens, and it is a matter of great satisfaction for us here at Promens that the company is now owned by two powerful investment companies, Horn Investment Company and the Enterprise Investment Fund, who will participate in the company’s continued progress in the coming months and years.”