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2016-12-15

Troax Group AB: Troax Group AB acquires Folding Guard, a division within Leggett & Platt US

Press release, Hillerstorp 15 December 2016, 08.00 CET

Troax Group AB has through its wholly-owned subsidiary Troax Inc.
entered into an agreement to acquire Folding Guard, a leading
American manufacturer of indoor perimeter protection solutions. The
seller is the publicly traded company Legget & Platt.

The acquisition is in line with Troax Group's ambition to gain a
significant market position in North America. The acquisition is
financed through existing cash and a tap issue under the company's
existing bond loan. Closing of the transaction is set to the end of
December 2016. Customary conditions precedents remain outstanding for
completing the transaction and the purchase price will be paid on
closing.

Folding Guard has 115 employees and its headquarters and manufacturing
is based in the Chicago area in the US. Products are sold through
Folding Guard's own sales force, representatives and distributors
across the US. The company has a solid track record and net sales
amounted to around USD 20 million in 2015 with a solid EBITDA margin.
Troax Group estimates that the acquisition of Folding Guard will
contribute with an EBITDA of around USD 3 million.

"Folding Guard is a leading supplier of indoor perimeter protection
solutions in the US. We see a lot of synergies between our
companies/resources; mainly on the sell- and production side. Troax
will keep the Folding Guard brand on the North American market but
gradually incorporate relevant products into Folding Guard's sell-
and distribution channels. We see a growing interest and long-term
need for quality solutions from large corporations and customer
groups in the US. Troax and Folding Guard will together provide an
unparalleled product offering" says Thomas Widstrand CEO Troax Group
AB

The purchase price amounts to USD 25.8 million and will be paid at
closing. The purchase price is subject to adjustments during a period
of maximum 120 days based on revised calculations, by both parties,
of the closing balance statement. A second payment of maximum USD 2.2
million may be paid, if the 12 month rolling EBITDA, as calculated in
June 2017, exceeds USD 3.225 million. The maximum total purchase
price may hence amount to USD 28 million. The initial purchase price
is financed by existing cash of about USD 4.9 million and through a
tap issue of USD 20.9 million under the company's existing bond loan.
The company's net debt to EBITDA is estimated to amount to 2.5
immediately following the completion of the acquisition of Folding
Guard. The acquisition is expected to have immediate positive impact
on Troax Group's earnings per share.

Carnegie Investment Bank has been engaged as financial advisor and
Gernandt & Danielsson as legal advisor in conjunction with the tap
issue. Mannheimer Swartling New York has been engaged as legal
adviser in conjunction with the acquisition.

Hillerstorp 15 December 2016

Troax Group AB (publ)
Thomas Widstrand
CEO

This information is information that Troax Group AB is obliged to make
public pursuant to the EU Market Abuse Regulation. The information
was submitted for publication, through the agency of the contact
person set out above, at 08.00 CET on 15 December 2016.

For additional information contact Thomas Widstrand, CEO

Thomas Widstrand
CEO
Troax Group AB
Box 89
330 33 Hillerstorp
Sweden
Tel 46 (0)370-82831
thomas.widstrand@troax.com

About Troax

Troax is the leading global supplier of indoor perimeter protection
("metal-based mesh panel solutions") for the market segments: Machine
guarding, Warehouse partitioning and Property Protection. Troax
develops high quality and innovative safety solutions to protect
people, property and processes.

Troax Group AB (publ), Reg. No. 556916-4030, has a global organisation
with an unparalleled sales force and efficient logistics setup,
enabling local presence and short delivery times in 33 countries.

In 2015 Troax net sales amounted to 103 MEUR and the number of
employees amounted to 440 persons. The Company's head office is
located in Hillerstorp, Sweden.

www.troax.com

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http://news.cision.com/troax-group-ab/r/troax-group-ab-acquires-folding-...
http://mb.cision.com/Main/11968/2147992/604205.pdf

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