TOMRA acquires leading recycling technology company

Tomra Systems ASA has on 21 December 2004 signed an agreement to acquire 100 percent of the shares in Orwak Group AB (Orwak Group) from Axenti Holding AB. Orwak Group, with headquarters in Sweden, is a leading provider of a wide range of compaction solutions for recyclables such as cardboard, paper and plastics with sales in more than thirty countries across the world.
Orwak Group's main subsidiaries are AB Orwak (Orwak), Presona AB (Presona) and AB Morinders Verkstäder (Morinders). The group had sales of SEK 282 million in 2003. Orwak and Morinders target primarily retail trade and industry, while Presona supplies large industrial compaction solutions to material recovery facilities and other industries. With over 50,000 units installed worldwide, the Orwak Group companies are considered to be leaders within the small and large compactor markets. More information about Orwak Group can be found at
Through the acquisition of Orwak Group TOMRA confirms its strategy and commitment to expand its recycling technology portfolio. The incorporation of Orwak Group into TOMRA's Recycling Solutions Division will further strengthen TOMRA's presence in non-deposit markets. The combination of Presona and TOMRA's subsidiary, TiTech Visionsort, offers potential for increased penetration of TiTech's optical sorting solutions in new markets. The acquisition of Orwak is deemed an important step for TOMRA in its ambition to become a leading global provider of recycling technology equipment and solutions.
The purchase price of the transaction equals an enterprise value of SEK 175 million and a conditional payment of up to SEK 20 million based on 2005 and 2006 earnings. The payment for the shares in Orwak Group will depend on the net debt as of 31 December 2004. The net debt will be finally confirmed in an audit. The effective date of the transaction is 1 January 2005 and closing of the transaction is scheduled for February 2005. TOMRA will finance the purchase price through cash reserves.

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