April 10, 2013 - Assignment

Orkla completes partial demerger of Sapa

As part of the completion of merging the Aluminium Profiles and Building Systems businesses of Orkla ASA and Norsk Hydro ASA into a 50/50 joint venture, Orkla has completed a partial demerger of its subsidiary Sapa.

The Sapa group develops, manufactures and markets value-added profiles, profile-based building systems and heat-exchanger solutions based on strip in the lightweight material aluminium. In 2011, the Sapa Group had combined net sales of approximately SEK 35,7 billion with 14,500 employees and its business is divided in three main business areas: Sapa Profiles, Sapa Building System and Sapa Heat Transfer. The Sapa Heat Transfer business area is in its turn divided in three business divisions: Rolled Products, Welded Products, and Extruded Products. The joint venture between Orkla and Norsk Hydro includes all business areas of the Sapa group apart from the Rolled Products business division of Sapa Heat Transfer.

As a result of the completion of the partial demerger of Sapa, the Rolled Products business division remains with the transferor company, renamed Gränges, while all other business areas have been separated into a new transferee company, named Sapa, which will eventually be contributed into the joint venture with Norsk Hydro.

Orkla and Sapa were advised by Mannheimer Swartling in the demerger. The firm’s team, headed by Isabella Ramsay, primarily included Sophie Ahlberg, Martin Fagerlund, Elin Leffler and Carl Björk. Thomas Pettersson (Banking and Finance), Martin Ericsson and Andreas Steen (Companies Act) and Sam Seddigh (Employment) were also involved.