Sentica Partners Merges Sheet Metal Fabrication Pioneers

Private equity investor Sentica Partners is to merge two leading experts in sheet metal fabrication: the Finnish Pivatic and the Swedish KMT Ursviken. The resulting corporation will offer customers enhanced productivity prospects through its advanced solutions for sheet metal working.

The two companies will continue to operate as separate ones. The synergies arising from the merger – a global sales network and service concept, and optimised procurement – will be exploited to produce growth. The corporation’s revenues for 2007 are expected to reach EUR 38 million, and the corporation will employ 155 people.

A fund managed by Sentica Partners Oy will acquire all the shares in KMT Ursviken Ab from the KMT Group, which is listed on the Stockholm Exchange. Ursviken specialises in the precise bending and shearing of long plate structures that help customers improve their performance and productivity. The company is the Nordic market leader in the sector and also holds a strong position in Europe, the USA and China. Ursviken’s production units are located in Skellefteå, Sweden, and it has a subsidiary in Illinois, USA. In 2006, the company had revenues of EUR 21 million and approximately 90 employees.

Pivatic Oy offers automated solutions for sheet metal fabrication, allowing customers to increase their productivity at one bound. Pivatic is one of the leading companies in the field, and exports some 90% of its production, mainly to Europe and America. As the owner of the company, Sentica Partners has developed Pivatic’s operations considerably, doubling its revenue to EUR 12 million in 2006. Pivatic’s headquarters and production unit are located in Hyvinkää, Finland, and employ some 65 people.

Pekka Heikkonen, a Senior Adviser in Sentica Partners Oy, will start as the new corporation’s CEO. He has been Pivatic’s Chairman of the Board since 2005.

Increased Growth through Synergies and Mergers

“Sentica Partners wants to generate growth in the new corporation by exploiting synergies arising from the merger, such as reinforced sales networks and service concepts, and optimised procurement. The corporation will also grow through acquisitions that complement its product and service selection and provide a presence in lucrative markets,” explains Lasse Grönlund, Investment Director at Sentica Partners. “The international growth of the machine and equipment building industry, and the strong development of contract manufacturing for the sector will increase demand for advanced, dimensionally accurate sheet metal fabrication solutions and related life cycle services. Pivatic and Ursviken’s solutions are renowned and trusted among demanding customers, which generates great aftermarket potential for life cycle services,” says CEO Heikkonen.

Further information:

Sentica Partners Oy

Managing Director Mika Uotila, tel. +358 (0)40 553 6110, e-mail: mika.uotila(at)sentica.fi

Investment Director Lasse Grönlund, tel. +358 (0)40 559 6102, e-mail: lasse.gronlund(at)sentica.fi

Senior Advisor Pekka Heikkonen, tel. +358 (0)400 499 185, e-mail: pekka.heikkonen(at)sentica.fi

Sentica Partners Oy

Sentica Partners is a private equity investor focusing on acquiring and developing small and mid-size companies.

As an alternative asset manager Sentica generates financial returns to its investors by combining solid industrial and financial expertise.

Sentica manages funds of approximately EUR 130 million. The company’s operations are structured into three business areas: buyouts,

 small cap transactions and health care. Sentica’s main units operate in Helsinki, Tampere and Kuopio.

The company employs some 20 persons. www.sentica.fi

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