HAKI Safety has reached an agreement to sell its FAS Converting Machinery operations to US-based corporation CMD.
The deal is valued at $3.7m on a debt-free basis and will allow HAKI Safety to continue to focus on its core business.
The agreement is also expected to positively influence HAKI Safety's cash flow and net debt by an equivalent amount.
FAS Converting Machinery, which falls under the company's Industrial Services business area, reported annual sales of approximately Skr86m ($8.45m) in 2022.
It is engaged in the development, production, and sale of machinery that converts plastic film materials into rolled products.
This machinery is predominantly used for manufacturing waste bags, disposable aprons made of polyethylene plastic, and industrial film. The company's headquarters is in Arlöv, Sweden.
The transaction is anticipated to be completed in the first quarter (Q1) of 2024 and is not expected to significantly impact the group's profit after tax, HAKI said.
HAKI Safety president and CEO Sverker Lindberg said: “The operation has been part of the HAKI Safety group since 2009 and has served us well. But with HAKI Safety's strategy change, from a conglomerate to today's industrial group, focusing on safety products and solutions at temporary workplaces, it simply does not fit into the future HAKI Safety that we are currently building.
“I am therefore very pleased to be able to communicate this transaction and I wish the operation, its management, and new owners all the best in the future.”
