Husqvarna signed an agreement to acquire German's Gardena AG from private equity firm Industri Kapital for 730 million euros (approx. U.S. $955 million). Gardena is a leader in Europe's consumer market for irrigation products, garden tools, garden ponds, pumps, and electric garden products. In the fiscal year ending September 2006, the company reported sales of 422 million euros (approx. $552 million) and operating income of 54 million euros (approx. $71 million).
While most of its sales are in Europe, Gardena products are sold in more than 80 countries. Production is based in Germany and the Czech Republic and the company has approximately 2,900 employees.
The acquisition is expected to be finalized in the first quarter of 2007, subject to approvals.
"We expect to see a positive trend in demand for irrigation products going forward and we see this product area as a platform for growth," said Bengt Andersson, president and CEO of Husqvarna.
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