Alimak Group AB: Alimak Group Acquires Facade Access Group

Regulatory News:

Alimak Group (STO:ALIG), the vertical access solution company, acquires the leading global BMU (Building Maintenance Unit) provider Facade Access Group for an enterprise value of 120 MAUD (approximately 819 MSEK).

Facade Access Group has a global market leading position in permanent Building Maintenance Units, BMU solutions, based on high safety standards and with a long lifecycle. The company addresses the market via two brands; CoxGomyl and Manntech. Through this acquisition Alimak Group strengthens and broadens the product portfolio, expands the existing footprint and business into a global adjacent niche market within vertical access while benefitting from a healthy underlying growth in the BMU-market.

"The complimentary combination of the two companies, especially when between the permanent installed solutions of Facade Access Group to Alimak’s Industrial Equipment, will enable scale and synergistic advantages in the supply chain, expand overall business opportunity, including further development of the aftersales offering. Hence, I see the acquisition as a strong strategic fit and I am convinced that it will generate value to our shareholders”, says Tormod Gunleiksrud, CEO of Alimak Group.

The transaction is subject to customary regulatory approvals and expected to close before year end 2016. After closing the acquisition is expected to be immediately accretive to EPS and contribute positively to cash flow while the Group’s EBIT margin is expected to be diluted.

Alimak Group acquires Facade Access Group for an enterprise value of 120 MAUD (approximately 819 MSEK) which corresponds to an EV/EBITDA of 7.7x and EV/EBIT of 9.2x as of June 30, 2016. The acquisition is funded by expanding existing credit facilities. Upon completion Alimak Group will maintain a solid capital structure, with an expected leverage (net debt/EBITDA), of about 2.1x being well in line with the strategic target. Integration costs are estimated to ~65 MSEK.

Alimak Group was advised by Lazard and Kirkland & Ellis. Due to effects on volume and earnings from the acquisition, Alimak Group will come back with an update of the financial targets at closing.

Telephone conference and audiocast:

Alimak Group´s, CEO, Tormod Gunleiksrud and CFO, Stefan Rinaldo, will present the transaction in conjunction with the quarterly presentation at a telephone conference and audiocast on Friday 28 October at 10.00 CET.

· SE: +46 856642699

· UK: +44 2030089807

The presentation can also be followed via webcast

https://wonderland.videosync.fi/2016-10-28-alimak-group-q3-report

The information in this release is such that Alimak Group is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at October 28, 07.00 CET.

About Alimak Group

Alimak is a world-leading supplier of elevators, platforms and after-market service for the industrial and construction sectors. The Group has manufacturing operations in Sweden and China and a sales and servicing network in more than 90 countries supplying and maintaining vertical access solutions. At present there are more than 22,000 elevators and platforms installed globally. Alimak was established in Skellefteå in 1948 and has 1,200 employees around the world. The Group is listed on Nasdaq Stockholm.

About Facade Access Group

Facade Access Group is the global market leader in building maintenance units with the global leading brands CoxGomyl and Manntech. Facade Access Group designs, manufactures, installs and services its equipment and solutions for facade access. The Company has sales offices in 27 countries, with manufacturing facilities in Spain, Germany and Netherlands. The group employs close to 700 people. www.facadeaccess-systems.com

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