Duni Divests Business Area Duni Americas
In 2005, the Duni Group implemented a new European structure with improved customer focus and clear profit responsibility, with the aim to strengthen Duni’s long-term competitiveness.
08/09/06 Duni has reached an agreement with Norwest Equity Partners, a private equity firm focused on investments in growing and profitable middle market companies, regarding the divestment of business area Duni Americas. The business area had a turnover of approx. 120 MUSD during 2005 and about 300 employees. The transaction results in a capital gain of approx. 24 MUSD, which can be invested in Duni’s European business.
In 2005, the Duni Group implemented a new European structure with improved customer focus and clear profit responsibility, with the aim to strengthen Duni’s long-term competitiveness. In connection with this new structure, Duni Americas gained more independence and a clearer strategic direction.
Duni Americas has, during the past year, focused on an improved product and customer mix and in addition managed to implement strategic price increases. These efforts in combination with streamlining of internal processes have contributed to a substantially improved profitability.
”The American business has experienced a very strong development and is facing the next phase in its development. With Norwest Equity Partners as a new owner, Duni Americas will have even better possibilities to continue developing on the US market while we can focus on expanding our business Duni Europe and deSter which is active mainly within inflight catering,” says Peter Nilsson, President and CEO of Duni AB.
The deal will strengthen Duni’s financial position and improve the gearing from 1.6 to 1.3. At the same time it makes it easier for Duni to continue its commitment to its two remaining business areas Duni Europe and deSter. The European market represents more than 85 percent of the Group’s turnover, after this transaction, and is expected to have great possibilities for further profitable growth. After selling Duni Americas, the Duni Group will still operate a 25 MUSD business in the US market within the business area deSter – inflight catering.
