Orkla, Aker RGI and Investcorp have agreed on the principles of an agreement concerning the acquisition by Investcorp of 70% of the shares in Helly Hansen.
The acquisition will be effected partly through the purchase of Aker RGI's 50% shareholding and partly through a private placement in the newly established company Helly Hansen Holding. This company will be the sole owner of Helly Hansen shares. Orkla reduces in this manner its holding in Helly Hansen from 50% to 30%.
Under the agreement Helly Hansen's equity capital is valued at USD 125 million. Orkla's 50% stake is thus valued at approximately NOK 430 million. Book value of the shares in Helly Hansen is NOK 58 million.
In relation with the change of ownership in Helly Hansen it has been important to bring in an owner who can make a professional contribution towards further developing the Helly Hansen brand on international markets. Investcorp, a world-wide investment group with offices in New York, London and Bahrain, has had considerable success in developing branded goods companies on a global basis. It is best known for its purchase and development of Gucci and Sports & Recreation in 1989 and Saks Fifth Avenue in 1990.
Helly Hansen will continue to have its headquarters in Norway, even through the company anticipates substantial international growth in the future. The membership of the Board of the new holding company Helly Hansen Holding will reflect the respective ownership interests of Investcorp and Orkla of 70% and 30%. Johnny Austad will resign as Managing Director of Helly Hansen in the course of 1997.
The agreement between the three parties will if executed enter into force in May 1997, subject to official approval.
Orkla: Olaf Eie, Chairman of the Board of Helly-Hansen, tel.: +47 22 54 40 00
Lisbeth Lindberg, Director Informasjon, tel.: +47 22 54 44 23/40 00
Helly Hansen: Johnny Austad, Managin Director, tel: +47 69 24 90 00
Date: 11 April 1997