Hexagon acquires handtool manufacturer in China

Hexagon has entered into an agreement to increase ownership in Jingjiang Measuring Tool Company (JMTC) to 90 per cent by acquire an additional 60 per cent of the shares of the company.

JMTC develops, manufactures and supplies a complete range of calipers, digital and mechanical.

JMTC had a turnover of 80 MSEK in 2006 and has shown an annual growth of about 20 per cent in recent years. The company is based in Jingjiang, China, and employs 500 people.

"The acquisition of JMTC is an important step in our strategy to grow Hexagon's position in the mid and low range hand tool market. The acquisition will complement the product offering of Hexagon owned TESA, a world leader in the premium measuring tool segment manufacturing most of its products in Switzerland", says Ola Rollén, CEO and President of Hexagon AB.

"Thanks to significant investments in equipment and infrastructure as well as in process management, JMTC has with its excellent quality reputation become a leading player both in the Chinese market as well as in the export markets", says Ola Rollén.

JMTC will be consolidated as of 1 July 2007 and will immediately contribute to Hexagon's earnings. JMTC and TESA will continue to operate separately.

For further information please contact:
Sara Kraft, IR Manager, Hexagon AB, +46 8 601 26 27, ir@hexagon.se