Swedish frame manufacturer becomes part of new holding company; effect on Car-O-Liner U.S. unit 'transparent'
Two European venture capital companies have agreed to acquire Swedish manufacturer Car-O-Liner, along with its sister company, Josam. Terms of the sale are not being disclosed.
3i Group L.C. and Euroventures on Oct. 2 announced that they would buy the two companies to form a separate, yet-unnamed holding company. Car-O-Liner and Josam were previously part of Zeteco's Alignment Systems, a subsidiary of Finnish engineering company Partek.
Euroventures, through the Baltic Rim and the Sixth AP (National Pension Insurance) Fund, and 3i will each have a 50 percent stake in the jointly owned enterprise upon approval by authorities similar to the U.S. Federal Trade Commision. 3i is comprised of about 300 companies and Euroventures of about 40 companies.
Bjor Ramberg, president of the entire Car-O-Liner group, says Car-O-Liner was "a fifth wheel" to Partek and that it did not fit the portfolio of its former parent company.
"It was very clear from the beginning that it [Car-O-Liner] would be divested if the company could find a suitable owner," he says.
Company officials for the procured companies say the purchase will be "transparent," having little change for the most part-particularly for the U.S. business units. "It's our parent company that is being sold and purchased for a wholly owned subsidiary," says Larry Carter, president of Car-O-Liner's U.S. division. All management will stay in place for both the U.S. business unit and Car-O-Liner in Sweden, he says. "This was a key requirement of the purchase," Carter says.
The Kungsor Sweden-based manufacturer of measuring and repair equipment for crash-damaged vehicles, will continue to operate under its brand name.
"This was a very good acquisition," Ramberg says. Although this acquisition does not mean much in the way of change to Car-O-Liner's U.S. operation, it will provide the overall Car-O-Liner group with financial backing and knowledge to augment the organization, he says. Ramberg says he is confident the U.S. operation will continue to remain strong. In 2000, Car-O-Liner generated revenues of $24.4 million.
"I'm happy with the acquisition and the new owners," he says. "I'm pleased, and all my colleagues are pleased. There are no negative feelings anywhere as far as I know, and I can't see any reason for them."
In a statement released about the acquisition, Hans Werner, investment director of 3i Swedish branch Nordic plc, says this transaction provides Car-O-Liner and Josam with a secure foundation that will allow them to enhance their concept and products.
