Chr. Hansen Holding A/S sells its food ingredients activities to PAI partners for DKK 8.2 billion.Chr. Hansen Chr. Hansen is a Danish food production company. They sell a wide variety of pharmaceutical grade exipients. The group employs approximately 2,500 employees in more than 30 countries and reported revenue of EUR 521m (DKK 3.77m DKK)in 2005/06. Chr. Holding has reached a definitive agreement with PAI PAI plasminogen activator inhibitor. PAI Plasminogen activator inhibitor, see there partners, a leading European private equity firm, to sell its food ingredients business operating under the name of Chr. Hansen. The total price, which is payable in cash, amounts to DKK DKK In currencies, this is the abbreviation for the Danish Krone. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 8.2 billion on a cash and debt free basis. Chr. Hansen is the worldwide leader in natural ingredients to the food industry with global market leadership positions in cultures, enzymes and natural colors and strong positions in flavour solutions. Chr. Hansen also holds strong positions within products encapsulating the health and nutrition benefits of these ingredients to animals and humans. PAI partners is a leading European private equity firm, which manages and advises dedicated private equity funds with an aggregate equity value of more than EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 7 billion. PAI partners has a strong track record acquiring companies across Europe and has made several acquisitions in the food and consumer industries. As a result of the transaction, PAI partners will acquire all of the activities related to food ingredients owned by Chr. Hansen Holding, including the buildings located at the headquarters in Horsholm, Denmark currently owned by Chr. Hansen Holding and used by Chr. Hansen. As of today Lars V. Frederiksen, current Executive Vice President, Business Operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets , will assume responsibility as CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Chr. Hansen and will oversee the transition team. In addition the existing management team comprised of Leif N0rgaard (CFO See Chief Financial Officer. ), Hans Thorkilgaard (Executive Vice President, Global Production and Supply) and Peter Olesen (CSO (Chief Security Officer) The person in charge of all staff members who are responsible for promulgating, enforcing and administering security policies for all systems within an enterprise or division. ) will continue under the new ownership. It is the intention of PAI partners to maintain the decision centre in H0rsholm, Denmark and to grow the business through continued expansion of geographic market coverage, investment in capacity and R&D as well as potential add-on acquisitions. "We are very pleased with the acquisition of Chr. Hansen. We strongly believe that it is a world-class company with a strong and excellent management. Chr. Hansen enjoys market leading positions in fast-growing markets and a widely recognized technological edge. We fully support the company's strategy and look forward to helping management to grow the business in the years to come", said PAI partners. The intention to investigate the possibilities for a divestment divestment to strip one's investment from an entity. of Chr. Hansen was announced on November 24, 2004. Since then a structured sales process A sales process is a systematic approach for performing product or service sales. The reasons for having a sales process include seller and buyer risk management, achieving standardized customer interaction in sales and scalable revenue generation. has been conducted during which a number of potential industrial and financial buyers have been invited to indicate their interest in the possible acquisition of Chr. Hansen. The outcome of this process is that the Board of Directors of Chr. Hansen Holding, based on an overall assessment of price, terms and deliverability, is of the opinion that the agreement to sell Chr. Hansen to PAl partners is the most attractive option to the shareholders. Jorgen Worning, Chairman of Chr. Hansen Holding, commented: "I am very satisfied with the overall outcome of the divestment and with the new home we have found for the food ingredients business. The separation of ALK-Abello and Chr. Hansen will create two strong individual companies benefiting their shareholders, customers and employees". The agreement with PAI partners is subject to approval by the shareholders of Chr. Hansen Holding and an extraordinary general assembly will be called in the coming weeks. As part of the agreement Chr. Hansen Holding's main shareholder the Lundbeck Foundation has given an irrevocable Unable to cancel or recall; that which is unalterable or irreversible. IRREVOCABLE. That which cannot be revoked. 2. A will may at all times be revoked by the same person who made it, he having a disposing mind; but the moment the testator is undertaking to vote in favour of the transaction at the extraordinary general assembly in respect of its entire shareholding representing 35.2 per cent of the share capital and 64.3 per cent of the votes of Chr. Hansen Holding. The final transfer of shares is subject to customary regulatory approvals and is expected to take place within a few months. Chr. Hansen reported sales for the financial year ended August 31,2004 of DKK 3,420 million and an EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become of DKK 633 million not including lease payments of DKK 31 million to Chr. Hansen Holding pertaining per·tain intr.v. per·tained, per·tain·ing, per·tains 1. To have reference; relate: evidence that pertains to the accident. 2. to the buildings in Horsholm to be transferred in connection with the sale. Depreciations amounted to DKK 178 million for the financial year ended August 31,2004, including depreciation of DKK 7 million on the buildings to be transferred as part of the transaction, and amortization of goodwill amounted to DKK 62 million. In connection with the transaction Chr. Hansen Holding has assumed normal liabilities for representations and warranties towards the buyer for which appropriate reservations will be made. The sale of the food ingredients activities is expected to result in an extraordinary profit after tax for Chr. Hansen Holding in the financial year ending August 31, 2005 of approximately DKK 4.2 billion after provision for representations and warranties. Contact Chr.Hansen on tel: +45 45 74 74 74 or visit www.chr-hansen.com |
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