INCAP ELECTRONICS SIGNED A LETTER OF INTENT TO BUY A BUSINESS OPERATION
Incap Electronics Ltd., which constitutes the electronics sector of Incap Group, signed a letter of intent with ABB Control Oy, an ABB subsidiary, concerning the purchase of steel sheet component manufacturing.
In accordance with this letter of intent, ABB Control Oys Low-voltage Systems Division will outsource the manufacturing of steel sheet components to Incap Electronics Ltd. This strategically planned purchase of a business operation will provide Incap Electronics with a new unit in Vaasa. The annual net turnover of this unit is about 10 million euro (about FIM 60 million), and it employs about 100 people, who will be taken over by Incap Electronics Ltd. as old employees.
The main customers of the business operation are ABB companies. The transaction will allow both parties to concentrate on their core competencies and will strengthen the cooperation between ABB and Incap Electronics. The parties aim to reach final consensus concerning the deal during the autumn.
The net turnover of Incap Electronics Ltd. during JanuaryJune 1999 was 18.0 million euro, and it employed 434 people. Incap Electronics currently has two manufacturing units, of which the Vuokatti unit specialises in electronics and the Helsinki unit in mechanics.
Incap Group is a contract manufacturer of electronics and furniture. The net turnover of the Group in JanuaryJune 1999 was 34.9 million euro, and the total number of employees was 684.
Oulu, 1 September 1999
President & CEO