Wing

Funds managed by Columbia Wanger Asset Management acquire 5.2% share in Marel Food Systems

PRESS RELEASE, 25 September 2009

  • Funds managed by Columbia Wanger Asset Management have acquired close to 32.2 million shares in Marel Food Systems hf., equivalent to a 5.2% ownership, at the price of ISK 59.0 per share.
  • Columbia Wanger Asset Management, L.P. is an SEC-registered investment advisor and indirect, wholly owned subsidiary by Bank of America Corporation.
  • The transaction increases Marel Food Systems’ hf. foreign ownership from 11% to 16%, which is in line with the company‘s stated goal to strengthen and internationalize its shareholder base

Arni Oddur Thordarson, Chairman of the Board of Marel Food Systems hf.

“We are very pleased with the trust that Columbia Wanger is showing in our strategy and management team. Columbia Wanger funds are former shareholders of Stork NV, the former parent company of Stork Food Systems, and have been following our company since the merger between Marel Food Systems hf. and Stork Food Systems.

At the beginning of 2006, Marel Food Systems hf. introduced its strategy to become the industry leader in the next 3-5 years. The company‘s market share has subsequently grown from 4% to 16% through the strategic acquisitions of AEW/Delford, Scanvaegt and Stork Food Systems. The company has now entered a harvesting period where the main focus is on further integration and organic growth.

An important part of the strategy introduced at the beginning of 2006 was to strengthen and internationalize the shareholder base. Following the transaction announced today, the Grundtvig family, Columbia Wanger, the company‘s foreign managers and other smaller foreign investors represent roughly 16% of the company‘s shares compared to virtually zero foreign ownership in beginning of the year 2006,“ says Arni Oddur Thordarson, Chairman of the Board of Marel Food Systems hf..

To facilitate Columbia Wanger‘s introduction to Marel Food Systems‘ hf. shareholder group, Marel Food Systems hf. will issue 9,131,725 new shares and sell 3,563,200 of its own shares. The company’s second largest shareholder, the investment company Horn, will sell 19,500,000 of its shares. The 2 / 2 shares are sold at the price of ISK 59.0 per share. The issuance of new shares is in accordance with existing authorizations. The total equity of the company following the transaction amounts to 616,000,000 shares.

Further information about Columbia Management is available at www.columbiafunds.com.

For further information, contact Sigsteinn P. Gretarsson, Managing Director of Marel ehf., (tel: +354 563-8072) and Ingolfur Gudmundsson, Corporate Director of Marketing and PR (tel: +354 563-8118).

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