METSO TO SELL SAKO LTD TO ITALIAN BERETTA
Metso Corporation has agreed to sell the entire share capital of Sako Ltd, a manufacturer of hunting and sports rifles, to the Italian company Beretta Holding on December 31, 1999. The parties have agreed not to disclose the transaction price.
Sako Ltd specializes in the development and manufacture of hunting and competition rifles. Annual net sales total approximately FIM 150 million with over 200 employees. Sako has production units in Riihimäki, Hausjärvi and Tourula, Finland, and a sales company in the USA.
The acquisition of Sako Ltd will enable Beretta to expand its product range to include hunting rifles. As part of Beretta, Sako will gain access to a strong sales and distribution network and to the collective expertise of a long-established gun manufacturer.
"Beretta intends to keep rifle development and production in Finland and commit further resources to the company in response to expected volume growth," states Mr U. Beretta, President of Beretta Holding. "Furthermore, Sako will become the Beretta unit responsible for the company's entire range in Northern Europe."
Beretta Holding, owned by the Italian Beretta family, is the oldest gun manufacturer in the world. The company's product range covers handguns and shotguns as well as products and accessories for hunting and outdoor activities. Beretta's net sales in 1998 totaled approximately EUR 230 million and it has roughly 2,000 employees.
Metso Corporation was created through the merger of Rauma and Valmet Corporation on July 1, 1999. Metso's business areas are fiber and paper technology, automation and control technology and machinery. The pro forma net sales of Metso Corporation was EUR 3.7 billion (FIM 22 billion) in 1998 and personnel totaled approximately 23,000. Metso Corporation is listed on the Helsinki Exchanges and New York Stock Exchange.