News releases

MB Funds buys Finnish Motor Vehicle Inspection Ltd.

The Finnish Motor Vehicle Inspection Ltd., formerly wholly owned by the Finnish State, was sold to MB Funds. The involvement of the private equity investor will provide additional resources for Finnish Motor Vehicle Inspection Ltd. to develop its business and for internationalization. MB Funds is developing and restructuring the inspection and testing sector in Finland.

The State has decided to sell the business operation of Finnish Motor Vehicle Inspection Ltd. in its entirety. The Council of State has approved the sale of the shares of Finnish Motor Vehicle Inspection Ltd. and the Ministry of Transport and Communications has today, 31.3.2003, signed the sale agreement. The purchase price of the shares is EUR 59 million, which includes the cash reserves.

In future, Finnish Motor Vehicle Inspection Ltd. will be owned by MB Funds together with its fund investors and the company’s management. The change of ownership will not affect Finnish Motor Vehicle Inspection Ltd.’s customer service, and the business will continue under its present name, which is well known to the Finnish public.

Growth from the international markets

Inspection services are the main business of Finnish Motor Vehicle Inspection Ltd. Other services include vehicle registrations, drivers’ examinations, various vehicle condition examinations and quality consultancy. The inspection business was deregulated in 1994 and dozens of competitors have entered the sector. Finnish Motor Vehicle Inspection Ltd. currently has a market share of approximately 64% of the inspection business.

The position of Finnish Motor Vehicle Inspection Ltd. in the Finnish market remains firm. The company will continue to invest in developing customer service. Additional growth will be sought from the international markets. In addition to its operations in Finland, Finnish Motor Vehicle Inspection Ltd. already has business operations at present in the Baltic countries, Poland and Russia.

Outlook good for technical inspection operations

”The field of technical inspection is interesting from the perspective of the equity investor. MB Funds wants to invest in this business sector and develop it further. We are continuously looking for new purchase and outsourcing targets in the technical inspection sector. We strongly believe in the outlook for the inspection business in Finland and internationally”, states Hannu Puhakka, Partner, MB Funds.

MB Funds also has previous experience in the technical inspection sector.

“Last October we implemented a buy and build transaction in which Inspecta Oy, a technical testing and inspection organisation, and SFS-Sertifiointi Oy, which provides certification services, were merged. The net sales of the corporate entity amount to EUR 26 million, and it employs 300 people. MB Funds has a majority holding in Inspecta Oy”.

”The new ownership arrangements are a positive step for our company. The involvement of a Finnish private equity investor enables the further development of our business operations”, reports Lasse Korppi, Managing Director of Finnish Motor Vehicle Inspection Ltd. “I also regard the new owners goals to develop technical inspection as an extensive business entity, in which our company is a major player, as a good idea”, stresses Korppi.

Finnish Motor Vehicle Inspection Ltd. had net sales of around EUR 62 million in 2002. The company employs over 1000 experts and has around 150 inspection stations in all.

Further information:
MB Funds, Hannu Puhakka, Partner, tel. + 358 9 1310 1352, +358-50 511 3917
Finnish Motor Vehicle Inspection Ltd., Lasse Korppi, Managing Director, tel. +358-204 882000