Rautaruukki Corporation, AB SKF and Wärtsilä Corporation have sold the operating companies owned by Oy Ovako Ab to a company owned by the shareholders of Hombergh Holdings BV, WP de Pundert Ventures BV and Pampus Industrie Beteiligungen GmbH & Co KG. 

The total price for the shares is approximately 660 million euros. In addition, the buyer will assume estimated net debt of 40 million euros at closing, making Ovako’s Enterprise Value approximately 700 million euros. As a result of the transaction and the subsequent liquidation of Oy Ovako Ab, SKF will make a tax-free capital gain of around 47 million euros.

With 16 production sites and some 4,600 employees in Europe, Ovako is a leading producer of engineering long steel products for the European rolling bearing, heavy vehicle, automotive and general engineering industries. Pro forma net sales in 2005 were 1.3 billion euros and pro forma earnings before interest and taxes were 150 million euros.

Hombergh Holdings BV and WP de Pundert Ventures BV are Dutch holding companies active in the precast concrete, steel and energy sectors, amongst others. Pampus Industrie Beteiligungen GmbH & Co KG is a major player in the German steel industry, with 18 factories in Germany and one in Canada.