Domstein ASA : Domstein acquires Fram Foods AB in Sweden

Domstein ASA has entered a Share Purchase Agreement where Domstein Sverige AB acquires the shares in Fram Foods AB, Lysekil from Fram Foods ehf. Iceland. Domstein Sverige acquires all the shares in the company for an amount of EUR 0.5 mill.

The acquisition of Fram Foods AB will result in a net accounting profit and positive equity effect amounting to NOK 30 mill. for the Domstein Group. Working capital will increase by MNOK 27. Fram Foods' factory buildings in Lysekil will be sold before the share transference, and Domstein Sverige enters into a long-term rental agreement with the new owner. Thereby there will be no increase in Domstein Sverige's long-term debt, and the Fram Foods operations will be financed by normal overdraft facilities.

Both Domstein Sverige and Fram Foods have production facilities in Lysekil on the western coast of Sweden. There will be significant synergies tied to the operational integration of the companies. An increase in yearly profitability in the region of MNOK 10 is expected when the integration is completed.

Domstein produces frozen and chilled seafood products, primarily for the Norwegian and Swedish markets. The products are marketed with the retail-chains own brands and by a range of Domstein brands (Domstein, Enghav, Lysekils and Isbjörnens). In the main product categories such as tube caviar, lumpfish- and capelin caviar, "lutefisk" and fish gratins Domstein will achieve a no. 1 or 2 position in the market. Domstein will also be a significant supplier of matie herring, anchovy, and frozen natural and breaded whitefish fillets.

CEO Rolf Domstein in Domstein ASA states that the acquisition of Fram Foods is both economically and strategically extremely important for Domstein. "The acquisition considerably strengthens our position in the Nordic chilled seafood market".

Fondsfinans has acted as Advisor for the acquisition.

Contacts:
CEO Rolf Domstein [phone]
CFO Keith Elliott [phone]