Scana - M&A Activity 2015 | FinancialReports.eu

Scana Industrier ASA - sale of Scana Steel Söderfors AB - extended announcement

Reference is made to announcement of 2 February 2015. This announcement is

prepared and published in accordance with section 3.4 of the Continuing

Obligations of stock exchange listed companies.

Scana Industrier ASA ("Scana Industrier" or the "Company") entered 30 January

2015 into a share and purchase agreement (the "SPA") with Garden Growth

Industries AB a part of Appplied Value Group ("GGI"). Under the SPA, GGI will

acquire Scana Steel Söderfors AB ("Söderfors") for the agreed acquisition price

of SEK 30 million on an Enterprise value (EV) approach, on a cash and debt free

balance at closing. Closing of the transaction is expected during week 6.

Söderfors is a manufacturer of high quality steel products specializing in high-

alloy and high-purity steels for demanding applications. The main products are

forged or rolled bars, sections, profiles and open die forged components with a

high technical content. The Board of Söderfors consists of Frode Alhaug

(chairman of the board), Hans Fredrik Forsberg (board member) and Jan Henry

Melhus (board member) at the time of transaction. The CEO is Per Jarbelius. The

company had 138 employees as of year end 2014.

The impact of the transaction for Scana Industrier is that it will realize sales

proceeds in the form of cash payment. The sale is part of the activities

undertaken by Scana Industrier to secure the Company's capital structure and to

dispose assets that are considered to be non-core business.

In 2013, Söderfors had revenues of MNOK 202.3, total assets of MNOK 171.7 and a

negative result before tax of MNOK 48.5. Scana Industrier consolidated revenue,

assets and result in 2013 was MNOK 1,874, MNOK 1,538, and minus MNOK 276.5

correspondingly.

Details with key financial figures are provided in an attachment to this

announcement.Key adjusted figures on Impact on Group accounts are taken from

management accounts after adjustment for intercompany revenue and cost

transfers.

For further information please contact:

Mr. Jan H Melhus, CEO Scana industrier ASA, Mobile +47 90 16 70 10

Mr. Kjetil Flesjå, CFO Scana Industrier ASA, Mobile: +47 90 04 12 13

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

[HUG#1891614]

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