LUMENE Group to focus on beauty and hair care - Farmos Oy to become independent

CapMan Plc Press Release 11 March 2008
CapMan's buyout investee company LUMENE Group is to focus on its Lumene Cosmetics and Cutrin business areas representing beauty and hair care from now on and LUMENE Group's subsidiary Farmos is to become independent. As a result of the reorganisation, the companies have good opportunities to focus on their core competencies and business development as independent companies. Both companies seek growth especially in the Baltic countries and Russia.
LUMENE Group develops, manufactures, markets and sells high quality skin care, cosmetic and hair care products. In the last few years LUMENE has expanded its operations to Russia, the Baltic countries and the US. The turnover of Lumene Cosmetics and Cutrin was approx. EUR 101 million in 2007 and the businesses employed some 730 persons. Tapio Pajuharju will continue as CEO of LUMENE Group.
Farmos manufactures and markets cleaning, disinfection and hygiene products as well as industrial chemicals for the food, restaurant and healthcare sectors, daily consumer goods trade, property maintenance and industry, among others. Farmos is a leading Finnish company in the cleaning and hygiene sector with a solid position in the Baltic countries and Russia, where it has a particularly strong growth outlook. Farmos' turnover was approx. EUR 40 million in 2007 and it had 260 employees, of whom some 90 were located outside of Finland. Juha Saarinen will continue as Managing Director of Farmos.
"The new clear-cut structure enables us to concentrate on our core competencies as an industry expert in beauty and wellness," says Tapio Pajuharju, CEO of LUMENE Group.
"The change has been positively welcomed at Farmos. The company's sales and profits have developed very favourably in the last few years, and we believe that our owners are prepared for the long-term development of Farmos as an independent Finnish company," states Juha Saarinen, Managing Director of Farmos.
Funds managed by CapMan acquired Orion's Noiro cosmetics unit in 2003 and the company's name was changed to LUMENE Group in 2005. A substantial part of the initial investment will be returned to investors in the CapMan funds in connection with the present restructuring. Following the execution of the restructuring, the funds will hold a stake of approx. 55 per cent in Lumene Cosmetics Oy and approx. 55 per cent in Farmos Ltd.
For further information, please contact:
Lars Hagelstam, Partner, CapMan Buyout, tel. +358 207 207 549 or +358 40 747 1870
CapMan www.capman.com
CapMan is one of the leading alternative asset managers in the Nordic countries and manages Nordic funds with approximately EUR 3.9 billion in total capital.
CapMan has four investment areas (CapMan Buyout, CapMan Technology, CapMan Life Science and CapMan Real Estate), and each of them has a dedicated team and funds. Altogether CapMan employs 110 people in Helsinki, Stockholm, Copenhagen and Oslo. CapMan was established in 1989 and its B shares are listed on the Helsinki Stock Exchange since 2001.
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