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Press release - 12 July 2005

CapMan invests in Swedish Inflight Service

Funds managed/advised by CapMan will acquire the majority of Swedish Inflight Service, a leading travel retail company in the Nordic countries. The minority shareholders will be two of the founders, Johan Bjarke and Johan Kullander, and the management. Inflight Service provides its customers and travellers with products, services and business solutions. The investment in Inflight Service will facilitate the company’s further expansion in the Nordic market and Eastern Europe. Mr. Conny Karlsson will become the Chairman of the Board.

The transaction will be made by a new company, and it is expected to be closed in September. The closing of the deal is subject to the approval of competition authorities. After the transaction CapMan funds will own 68% of the company, co-founders Johan Bjarke and Johan Kullander will own 23% and the company’s other key employees will own the remaining 9% of the company.

Inflight Service’s business concept is to provide the travel industry with the merchandise that travellers purchase, as well as retailing services and solutions. Inflight Service has a leading position in the Nordic market with airline and shipping companies and airport shops as customers. The customers achieve benefits through lower purchase prices, internal efficiency gains and possibility to focus on core business. Inflight Service’s main product groups are wine & spirits, perfumes & cosmetics, tobacco goods, confectionary and luxury goods. The company’s annual turnover 2004 amounted to EUR 138.6 million (SEK 1.3 billion). In spring 2005 Inflight Service acquired airport shop operations in the Baltic States and Poland.

“Inflight Service has a strong market position, a competitive and in certain areas unique offering, and an efficient logistics chain. This, together with the company’s solid and profitable growth, makes Inflight Service an attractive investment for CapMan funds,” says Mats Gullbrandsson, Investment Director at CapMan. “Our ambition is to, together with the company’s management, strengthen and improve the company’s strategic position in the Nordic countries and to focus on finding new business opportunities in primarily Eastern Europe,” Gullbrandsson continues.

“We are very pleased to have CapMan as our new reliable business partner. Inflight Service is well positioned to take advantage of the steadily growing travel retail market and to broaden its customer base and service offering. We are confident that CapMan’s experience, partner network and financial support will help us to take the company to the next level,” says Peter Candell, CEO, Inflight Service.


For further information, please contact:

Mr. Mats Gullbrandsson, Investment Director, CapMan Buyout, tel. +46-8-545 85 481 or +46-734 408 488
Mr. Peter Candell, CEO, Inflight Service, tel. +46-8-594 90 729 or +46-706 741 244


About the companies:
 
CapMan

CapMan is one of the leading private equity investors in the Nordic countries and specialises in middle market buyouts in various industry sectors, technology investments in the IT and communications sectors and investments in life science companies. In addition, CapMan manages/advises private equity real estate funds. The CapMan team comprises around 95 people in Helsinki, Stockholm, Copenhagen and Oslo. CapMan manages/advises Nordic funds with approx. EUR 1.9 billion in total capital. To date, the funds managed/advised by CapMan have invested in 141 companies in the Nordic countries and exited from 73 companies. The latest investments are made in Norwegian InfoCare AS, Finnish Moventas Oy (formerly Metso Drives Oy), Swedish SciBase AB and Danish Anhydro Group. The portfolio of CapMan’s first private equity real estate fund consists of 17 commercial properties in the Helsinki metropolitan area. CapMan Plc is listed on the Main List of the Helsinki Stock Exchange.

Inflight Service
Inflight Service is a Swedish based company that provides customers and travellers with products, services and business solutions within Nordic travel retail. The company enjoys a leading position within the Nordic travel retail market with customers in airport shops, charter airlines and ferry lines. Customers include leading operators in the Nordic travel industry such as My Travel, SAS, Britannia, Novair, Silja Line, Tallink and DFDS. Inflight Service also operates own airport shops in Poland, Estonia and Latvia. The company’s turnover for fiscal year 2004 was MEUR 138.6 (SEK 1.3 billion) and number of employees is 140. www.inflightservice.se