Uponor impairs vendor note related to 2008 divestment – profit for the year 2011 declines by €6.0 million

Uponor Corporation             Stock Exchange Release                 7 February 2012  10.10 EET

Uponor impairs vendor note related to 2008 divestment – profit for the year 2011 declines by €6.0 million

On 9 May 2008, Uponor announced that it had divested its UK and Irish municipal infrastructure business to the private equity company 3i and funds managed by 3i. Net sales of the divested business came to €169.1 million in 2007. The enterprise value of the deal amounted to GBP 100 million, giving Uponor a sales gain of nearly €50 million, which was included in discontinued businesses.

Uponor Corporation has been made aware of the fact that current market conditions have led to a material weakening in the profits and financial position of the divested business. The long-drawn-out refinancing negotiations have, in Uponor’s judgement, proven inconclusive and the value of Uponor’s vendor note is consequently highly uncertain.

Uponor issued a vendor note to the buyer to cover the part of the purchase price remaining unpaid. The total sum including capitalised interest amount to €6.0 million. Uponor has decided to impair the value of the asset in its 2011 financial statements, resulting in an increase in financial expenses.

For more information, please contact:
Jyri Luomakoski, President and CEO, tel. + 358 20 129 2824
 

Uponor Corporation

 

Tarmo Anttila
Vice President, Communications
Tel. +358(0)20 129 2852

 

 

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www.uponor.com

 

Uponor is a leading international provider of plumbing and indoor climate solutions for residential and commercial building markets across Europe and North America. In Northern Europe, Uponor is also a prominent supplier of infrastructure pipe systems. Uponor offers its customers solutions that are technically advanced, ecologically sustainable, and safe and reliable to own and operate. The Group employs approx. 3,200 persons, in 30 countries. In 2010, Uponor's net sales totalled €750 million. Uponor Corporation is listed on NASDAQ OMX Helsinki in Finland. http://www.uponor.com.