Thule divests its business area Towing Systems in North America

Malmö, June 29th 2009 – Thule, the world leader in Sports and Utility Transportation has decided to divest its North American towing systems operations through a management buy-out. The business will be taken over by five management representatives led by current Business Area President George Caplea. The agreement is effective from today June 29th 2009.

“The business landscape for Valley branded towing products has gone through dramatic changes since we bought the operations in 2006. Towing Systems in North America are especially hit by the decline in demand”, comments Thule CEO Anders Pettersson. “The Board of Directors has therefore taken a strategic decision to focus on sales to the aftermarket in North America for cargo and sport as well as professional contractor products. “Handing over the business to the current management team around George Caplea will ensure that the interests of customers, suppliers and employees are seamlessly taken care of in the best way”, concludes Anders Pettersson.

Thule Towing Systems with the Valley brand is currently number two in the North American market with annual sales of approx 55 MUSD. Thule acquired the company mid 2006 and has since then invested a substantial amount into the restructuring of the business. During 2008 manufacturing was moved from Madison Heights to Lodi, California, to better offset the volume decline in the North American market for towing systems.

Thule has annual global sales of approximately 800 MUSD. One third of Group sales are generated on the North American market through business area Vehicle Accessories based in Seymour, Connecticut, and through business area Organization Solutions based in Longmont, Colorado.

Buyer and seller have agreed to not disclose the purchase price.

 For more information please contact
Anders Pettersson, CEO and President, +46 703-414150
Daniel Oelker, SVP Corporate Communication, +46 730 799004

Thule is the world leader in Sports and Utility Transportation offering accessories to active families, outdoor enthusiasts and professionals who want to transport their equipment by vehicles safely, easily and in style. The company has leading market positions globally and operates from more than 30 sites employing 3,500 people. The company has annual sales of approx 800 MUSD and is headquartered in Malmö, Sweden.