Home press releases MFC acquires FESIL

MFC Industrial Ltd. (MFC) and FESIL Invest AS have entered into an agreement whereby MFC will acquire a 100% interest in the FESIL AS Group (FESIL) which includes subsidiaries FESIL Rana Metall AS and FESIL Sales AS.

FESIL Invest AS’ interests in FESIL Lilleby AS and Mo Industripark AS do not form part of the transaction.

MFC Industrial Ltd. is a global commodity supply chain company and is active in a broad spectrum of activities, including its integrated commodities operations, mineral and hydrocarbon interests, which focus on metals, energy, chemicals, plastics and wood products. MFC is a public company listed on the New York Stock Exchange (NYSE:MIL).

FESIL Invest AS is owned by Spencer Energy AS (64.6%), Datum AS (28.7%), Granhaug Industrier AS (4.1%) and other minority shareholders with a combined ownership of 2.6%.

In 2012 FESIL AS had revenues of 3.290 million Norwegian Kroner and 170 employees of which 115 in Norway and 55 in the FESIL Sales activities.

The equity purchase price is approximately 500 million Norwegian Kroner and MFC shall pay a royalty based on Rana production volumes over the next two years.

  • Michael Smith, Chairman of MFC commented: "We are very pleased to announce that this acquisition will add geographic reach, a diverse product portfolio, an excellent established brand name, a very well-respected management team and excellent employees to complement MFC’s global commodity supply-chain platform. We very much welcome all of FESIL’s customers, suppliers and again especially all of the employees to the MFC family and look forward to the future together."
  • Arne Blystad, Chairman of Fesil Invest AS commented: "We have chosen to divest our holding in FESIL in order to release capital for other investments that the owners of Fesil Invest AS are involved in. MFC is an industrial owner who seeks to further develop FESIL and we believe this to be a good solution for FESIL and its employees."
  • Einar Martin Skjølberg, CEO of FESIL commented: "We have previously cooperated with MFC through our Fesil Sales activities and see opportunities to strengthen MFC’s sales activities with products from Rana. In addition, Fesil Rana and Fesil Sales will benefit from a broader global network, which will further reinforce their competitive positions."

The final closing, which is scheduled in the first quarter of 2014, is subject to the approval of the competition authorities of Germany, Austria and Ukraine.

For further comments:

Chairman of the Board of FESIL AS, Bjørn M. Wiggen – telephone: +47 478 20 937
CEO of FESIL AS, Einar M. Skjølberg – telephone: +47 901 30 330

For further information on MFC: http://www.mfcindustrial.com