The Enterprise Investment Fund (EIF) has concluded an agreement to acquire 49.5% interest in Promens hf. Earlier this year Horn Invest hf.(Horn) and EIF reached an agreement
that EIF would acquire a 40% interest in Promens with an option to increase its share by an additional 9.5The deal was subject to the outcome of a due diligence process which now has been concluded. EIF has decided to exercise its option to increase its interest to the full extent. The acquisition price is EUR 49.5 million.

Following the transaction EIF will hold 49.5% interest in Promens, Horn 49.8% and key employees of Promens some 0.7% with the common objective to list Promens on a regulated stock exchange in two to three years. A part of the purchase price (EUR 20 million) will be used to purchase new shares in Promens, to be issued following the transaction, which will strengthen the balance sheet of Promens.

Promens is a leading global plastics manufacturer operating 45 plants in 19 countries with 4200 employees. 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, personal care, chemicals, pharmaceuticals and the automotive and electronics industries.

Hermann M. Thorisson, managing director Horn: “Since 2008 Horn has been a major shareholder in Promens, supporting the company and gradually increasing its interest, which reached 99% following a deal with Atorka Group in the beginning of 2011. Horn generally holds a minority interest in investment projects while collaborating closely with co-investors possessing sector specific expertise. Horn considers its investment in Promens to be a transformational investment and sees a great potential in the near future for Promens.”

Finnbogi Jónsson, managing director of EIF: “We have a firm belief in the future potential of Promens. The company has a broad product portfolio and operates in Iceland as well as abroad. Approximately EUR 20 million of our investment will be used to strengthen the company even further and a part of it will be used to build an extension to the manufacturing facility in Dalvik, Iceland. We look forward to working closely with the other shareholders, managers and other employees to develop and strengthen the operations of Promens.”

Jakob Sigurdsson, CEO Promens: “We welcome EIF into the shareholder group of Promens. It is very important for Promens to have strong owners and we look forward to working with them towards strengthening and growing the company even further. Initiatives on sales and operational excellence and consolidations are progressing well with a steady growth in sales so far during the year and a positive outlook for the remainder.”

Promens’ operations have recovered well following the recession. Turnover in 2010 was EUR 584 million, compared to EUR 512 million in 2009, with EBITDA (before exceptional costs) of EUR 51.9 million compared to EUR 35.8 million in 2009. Net profits after tax in 2010 were EUR 11.7 million (EUR 2.1 million pre-exceptional expenses/income) compared to a EUR 30.6 million loss in 2009. Operations in the first half of 2011 have improved with turnover reaching EUR 339 million, generating an EBITDA of EUR 29.7 million and post-tax profits reaching EUR 3.5 million. Following the investments of Horn and EIF in Promens, the equity ratio will increase to 32.3%. Key financial figures are provided in the table below (note that the 2011 numbers include the EIF investment):

Million EUR



6 months 2010

6 months 2011

Gross turnover










Percentage of sales










Total assets





Interest bearing dept










Over the last few months Promens has been working on refinancing its senior debt and is in advanced stages of finalising that process with its long-standing banking partners. Stronger ownership and secured financing allows the company to put more emphasis on developing operations in its chosen markets. The shareholders of Promens have a firm believe that their investment in the company will secure good returns in the years to come.

The deal is subject to an approval from the Icelandic Competitive Authorities.

For more information:

Horn Invest hf

Hermann M. Thorisson,, tel 410 2800

Promens hf.
Jakob Sigurdsson, jakob.sigurð, tel580 5550

Equity Investment Fund
Petur Þ. Oskarsson,, tel 571 7080 og GSM 863-6075

Information for editorial staff:
Promens website:

About the Equity Investment Fund. (
The Equity Investment Fund is owned by sixteen Icelandic pension funds, Landsbanki and the Insurance company VIS.  The fund is specialized in investments and business development. Its mission is to participate in the resurrection of Icelandic businesses.
The Fund is authorised to invest abroad and intends to participate in investments that contribute to streamlining or merger of firms. The Chairman of the Board of EIF is Thorkell Sigurlaugsson og managing director Finnbogi Jónsson.

About Horn Invest hf. (
Horn is an investment company that focuses on investments in listed and unlisted securities in a broad range of sectors. Horn has in the past years returned good profits on its investments. The balance sheet of the company is approximately 30 billion Icelandic Krona in a diverse portfolio. Horn emphasizes on in depth analysis on all shareholdings in its portfolio. It has been announced that Horn will be listed on the Icelandic Stock Exchange later this year.