Triton to sell Ovako to Nippon Steel & Sumitomo Metal Corporation, a global market leader in steel production
- Since Triton's acquisition, Ovako has strengthen its position as one of the leading European producers of engineering steel
- Nippon Steel & Sumitomo Metal Corporation`s and Ovako's operations are complementary, have a great cultural fit and the combined business is expected to further enhance customer offerings
- The parties have agreed not to disclose the terms of the transaction. The sale is subject to regulatory approval
Stockholm (Sweden) / Tokyo (Japan), 15 March 2018 - Funds advised by Triton ("Triton") today announced the sale of Ovako AB ("Ovako"), a leading European producer of engineering steel to, Nippon Steel & Sumitomo Metal Corporation (“NSSMC”), one of the world's largest steel producer by volume as of 2017. NSSMC will acquire 100% ownership of Ovako. The parties have agreed not to disclose the terms of the transaction. The sale is subject to regulatory approval.
Triton acquired Ovako coming out of the financial crisis in 2010. During Triton’s seven-year ownership period, the management and board of Ovako have worked together on a number of improvement initiatives with the aim of strengthening Ovako’s position as one of the leading European producers of engineering steel. Key improvement initiatives include clear segment strategies, increased production efficiency, employee safety programs, investments in product development, establishment of a new global sales organization and the launch of digital tools to improve the sales process.
“Ovako is a global technology leader regarding high-cleanliness steel for bearing steel and other advanced applications”, says Kosei Shindo, President of NSSMC. “Our goal with the acquisition of Ovako is to strengthen and expand our global business and further strengthen our technology, product quality, and product development capability for special steel, and securing a base of manufacture and sales in Europe, to strengthen our global special steel business.”
"We would like to thank the management team, the employees and all other stakeholders for their contributions to Ovako's successful development during Tritons ownership. Triton has been the owner of Ovako for more than seven years and we view this as an appropriate time for a long term industrial owner to continue the development of Ovako. Nippon Steel & Sumitomo Metal Corporation is an ideal partner for Ovako going forward with a ideal cultural fit. This partnership will open new opportunities for both companies" says Peder Prahl, Director of the General Partner to the Triton fund.
Johan Pernvi, Investment Advisory Professional and Advisor to the Triton Funds comments: “Ovako has an excellent position for the coming years. Innovative product development, digital leadership and strong expertise in clean steel production clearly differentiates Ovako in the market. We are delighted to have found a very qualified long term owner that can secure a strong future for Ovako.
About Ovako
Ovako develops high-tech steel solutions for, and in cooperation with, its customers in the bearing, transport and manufacturing industries. Ovako steel makes its customers’ end products more resilient and extends their useful life, ultimately resulting in smarter, more energy-efficient and more environmentally-friendly products.
Ovako production is based on recycled scrap and includes steel in the form of bar, tube, ring and pre-components. Ovako is represented in more than 30 countries, and has sales offices in Europe, North America and Asia. Ovako’s sales in 2017 amounted to EUR 921 million, and the company had 3,040 employees at year-end. For more information, please visit www.ovako.com
About Triton
The Triton funds invest in and support the positive development of medium-sized businesses headquartered in Europe, focusing on businesses in the Industrial, Business Services and Consumer/Health sectors.
Triton seeks to contribute to the building of better businesses for the longer term. Triton and its executives wish to be agents of positive change towards sustainable operational improvements and growth. The 36 companies currently in Triton's portfolio have combined sales of around €14.2 billion and around 91,000 employees.
The Triton funds are advised by dedicated teams of professionals based in Germany, Sweden, Norway, Finland, Denmark, Italy, the United Kingdom, the United States, China, Luxembourg and Jersey.
For further information: www.triton-partners.com
