Following the announcement of the anticipated acquisition of Handicare by Nordic Capital Fund VII in June 2010, the Dutch Competition Authority (NMa) initiated an investigation, because of another Nordic Capital Fund’s holding in power wheelchair manufacturer Permobil. Although Handicare and Permobil are two independent companies and have no intention to merge their activities, the NMa concluded that the intended transaction would be harmful to competition in the Dutch power wheelchair market. To resolve this situation we have explored possible scenarios with the NMa, and we are pleased to announce that the NMa has now approved the ‘remedy proposal’ submitted and decided to provide merger clearance provided this remedy is implemented.

The remedy proposal concerns the establishment of a new company incorporating the following power wheelchair models currently offered by Handicare: Alex, Beatle and Ibis XP. The new company, set up by Handicare, will at a later stage be sold to an independent buyer, establishing a viable and efficient player in the (Dutch) market. Outside the Netherlands, Handicare sales organisations will continue to sell the power wheelchairs involved as a distributor.

We are convinced that the acquisition by Nordic Capital Fund VII will provide a solid financial basis for Handicare’s strategy to continue to provide our customers with high-quality, innovative mobility solutions in all key market segments. We anticipate closing of the transaction by the end of this year.

For more information, please contact:

• Per Gunnar Borhaug, CEO Handicare, +47 69244514
• Rens Schoenmakers, Managing Director Mobility Handicare, +31 492 593 886