Lahti, Finland, 2017-03-31 22:00 CEST (GLOBE NEWSWIRE) -- RAUTE CORPORATION STOCK EXCHANGE RELEASE 31 MARCH 2017 at 11:00 p.m.
RAUTE CORPORATION STRENGTHENS ITS OFFERING FOR VENEER AND LUMBER GRADING TECHNOLOGY BY ACQUIRING THE BUSINESS OF METRIGUARD INC.
Raute Corporation and the owners of Metriguard, Inc. have today agreed on the purchase of the business of Metriguard Inc., Pullman, Washington, USA.
Metriguard, established in 1972, is the world leader in high speed strength grading technology for lumber and veneer. Metriguard sells and provides services for its equipment globally, with installations in North and South America, Europe, Asia, Africa, Australia and New Zealand.
Metriguard’s products and technology are complementary to Raute’s current product offerings. Over the years, Metriguard’s products have been integrated into dozens of Raute’s deliveries. Metriguard’s net sales were USD 4.6 million in 2016, with an EBIT of USD 0.8 million, and it employs 26 people.
Metriguard’s business will continue by a newly established Raute’s subsidiary Metriguard Technologies, Inc.. Its financials will be reported as part of Raute’s wood products technology segment. The acquisition is deemed to have a positive effect on Raute’s net sales in 2017 and on its financial results starting from 2018.
The acquisition is made as an asset purchase. Intangible assets, working capital and fixed assets, except real estate, are acquired. Metriguard’s personnel will transfer in along with the acquisition. The purchase price, estimated at USD 4.5 million, is paid in two installments. A base purchase price of USD 3.1 million is paid at closing, additionally there will be an earn-out payment based on net sales for a 12-month period following closing of the transaction.
Says Raute’s President and CEO Tapani Kiiski: “Metriguard's technology has evolved over more than four decades and has proven to provide veneer and lumber mills with significant benefits in terms of enabling capturing the highest possible value of the given raw material. Raute's strategy is to provide technology to our customers to help them run their business in a profitable way, but strength grading technology has been missing from our offering. With Metriguard's technology, and its solid and well recognized brand, we will be able to offer even more comprehensive solutions. We believe this acquisition will help Raute grow and open new opportunities for Metriguard."
James D. Logan, P.E., President and founder of Metriguard Inc. says that this is a great opportunity for the future of Metriguard, its employees and customers: “We are really pleased to be working with Raute, a global company with a most excellent reputation for quality of products and service. Metriguard's customers can look forward to a continuing supply of outstanding production line and quality control test equipment as well new developments that will enhance performance of existing equipment and provide new functionality. The company will continue to operate in Pullman, Washington where its personnel provide equipment and services to the global market. Metriguard's proximity to two major universities provide an excellent environment for research and development.”
RAUTE CORPORATION Tapani Kiiski President and CEO
FURTHER INFORMATION: President and CEO Tapani Kiiski, Raute Corporation, mobile + 358 400 814 148, email: tapani.kiiski@raute.com
DISTRIBUTION: Nasdaq Helsinki Ltd, main media, www.raute.com
RAUTE IN BRIEF: Raute is a technology and service company that operates worldwide. Raute’s customers are companies operating in the wood products industry that manufacture veneer, plywood and LVL (Laminated Veneer Lumber). The technology offering covers machinery and equipment for the customer’s entire production process. As a supplier of mill-scale projects, Raute is a global market leader both in the plywood and LVL industries. Additionally, Raute’s full-service concept includes technology services ranging from spare parts deliveries to regular maintenance and equipment modernizations. Raute’s head office is located in the Nastola area of Lahti, Finland. Its other production plants are in Kajaani, Finland, the Vancouver area of Canada and in the Shanghai area of China. Raute’s net sales in 2016 were EUR 113.1 million. The Group’s headcount at the end of 2016 was 643. More information on the company can be found at www.raute.com.
