Wallenbergs buy Gothenburg health company

The powerful Wallenberg family's holding company Investor and investment bank Morgan Stanley have bought Swedish company Mölnlycke Healthcare.

Mölnlycke produces healthcare products such as bandages and disposable products for use in operations. The company is being sold for €2.85 billion, nearly 26 billion kronor. The seller is venture capital company Apax Partners.

Gothenburg-based Mölnlycke had a turnover of €760 million (6.9 billion kronor) last year, and had an operating profit before write-downs of around €230 million (2.1 billion kronor).

The deal will mainly be financed through external loans. Mölnlycke will be owned by a holding company in which Investor and Morgan Stanley own equal shares.

Mölnlycke’s management team will be minority shareholders of the company.


Sweden Investor group posts sharp profit drop

Swedish investment giant Investor on Wednesday said its first-quarter profits slumped by a quarter, underlining Sweden's vulnerability to international instability.

Sweden Investor group posts sharp profit drop
File photo: Simon Cunningham/Flickr
From January to March 2014 the group – one of the largest investors in Nordic-based multinationals including Saab, Atlas Copco and Ericsson —
reported a 25 percent drop in profits from a year earlier to 12.14 billion kronor ($1.85 billion).
However the group's net asset value, at 227,584 billion kronor grew by 5.6 percent compared to the previous quarter.
Founded over a century ago by the Wallenberg family, the Investor group is often seen as a barometer for the economic health of Sweden, given the large number of indigenous companies which are partly owned by the group.
Among its main investments are engineering company Atlas Copco (16.8 percent share), SEB bank (20.8 percent), the Swiss-Swedish engineering and
robotics firm ABB (8.1 percent) and the white goods group Electrolux (15.5 percent).
Group president Börje Ekholm said in a statement that current geopolitical uncertainty "will increase the uncertainty for our export companies".
The groups shares were down 0.7 percent in late afternoon trading on the Stockholm Stock Exchange in an overall market down 1.2 percent.