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Groupe Laperriere & Verreault Inc. (GL&V), has sold the starch centrifugation products and technologies business of its Dorr Oliver Group to the Swedish company Alfa Laval. GL&V (Toronto, ON) acquired the Dorr-Oliver Group of companies through its subsidiaries this past September, and proceeds of the sale will be used to reduce the long-term debt incurred in this acquisition.

"First, the integration of the Dorr-Oliver Group of companies is progressing on track and according to plan, and the synergies should yield the expected benefits. Its contribution will be reflected primarily in earnings for the last quarter. Based on the strategy that we have applied for several years, and that has been beneficial during these years of strong growth-by-acquisition, we decided to divest the operations that are not truly in our areas of expertise, in order to better concentrate on technological solutions for pulp and paper, minerals, and environmental markets," explained Laurent Verreault, president and CEO of GL&V.

"We therefore accepted the bid tendered by Alfa Laval, which has solid expertise in products designed for the manufacture of starch and is better positioned to serve clients in this sector," Verreault continued. "What makes this transaction particularly satisfactory is that it enables Alfa Laval to further penetrate the U.S. market, and GL&V to develop a partnership that we hope to extend to other business."

GL&V will continue to manufacture products for the account of Alfa Laval. In addition, it has signed a privileged agreement with Alfa Laval for the supply of all parts peripheral to the centrifugation products used in the manufacture of starch.

Through this transaction, GL&V divested mainly the proprietary and international rights to the three Merco, Mercone, and ClariDry branded centrifugation products as well as the assets related to those products. GL&V also sold its interest in Dorr-Oliver B.V. (Holland), except for the net assets not related to the divested operations.

In Sept. 1998, GL&V had acquired the Alfa Laval Celleco Div., consisting of all operations connected with the pulp cleaning and filtration products and technological solutions designed for the paper industry. Since then, the GL&V/Celleco subsidiaries in the U.S., Sweden, and Finland have been profitably integrated into GL&V's Pulp and Paper Group, to which they make a substantial contribution, the company reports.

Founded in 1975, GL&V is a leader in the design and manufacture of engineered proprietary equipment for the pulp and paper industry and other industrial markets, mostly chemical products, mining, metallurgy, energy, and the environment. The company holds the proprietary rights to most of the equipment used in its customized technological solutions. Its equipment is manufactured mainly in its plants in North America and Europe as well as by a network of subcontractor partners.

GL&V's sales network extends over all five continents. The Company has operating centers and/or sales representatives in Canada, the U.S., six European countries, Australia, Africa, and Asia, as well as sales agents in most industrialized regions. The company currently employs more than 1,000 people worldwide.

Edited by Ken Patrick