OpenGate Capital to Acquire AICO S.p.A. as an Accretive Add-on to Jøtul Group

Italian Manufacturer of Home Heating Products Will Support Jøtul’s Transformation Plan.

Fredrikstad, November 6.2018: Jøtul Group (“Jøtul”), one of the world’s oldest producers of stoves, inserts and fireplaces, announced today that its owner since March this year, OpenGate Capital, a global private equity firm, has signed an agreement to acquire AICO S.p.A. (“AICO”), an Italian manufacturer of residential stoves, fireplaces, boilers and cookers from Ambienta SGR, a European private equity group.

AICO offers a wide range of premium home heating products that are energy efficient and utilize pellets, a renewable energy source. The business features two well-established brands, Ravelli and Elledi, which are exported to more than 40 countries. Headquartered in Palazzolo sull’Oglio, Italy, AICO’s 150 employees oversee the design, manufacturing and in-house testing to ensure all products comply with European quality, safety, and environmental compliance standards.

AICO will constitute a synergistic add-on to Jøtul and enhance the Jøtul product portfolio with pellet technology products, a growing market for consumers demanding an alternative to wood-based home heating products or heating based on fossil fuels.

“We have been working closely with OpenGate’s team of professionals on the AICO transaction, and we are happy with this add-on to our existing business. Upon completion of this investment, AICO’s products will expand the Jøtul portfolio and enable the business to be a more complete supplier to the many exclusive and multi-brand specialty dealers. This is especially important in the Latin European Market where use of pellets technology for heating is growing. This transaction will create synergies and give AICO the possibility to expand into new markets”, said Jøtul CEO, Nils Agnar Brunborg.

Closing is expected by mid of November 2018. Terms of the transaction were not disclosed. In conjunction with the transaction, Jøtul has mandated Pareto Securities AB to (i) investigate the possibility of carrying out a subsequent issue of bonds which, should it materialize, would utilize a substantial portion of the outstanding capacity under Jøtul’s existing senior secured bonds; and (ii) negotiate with bondholders regarding potential amendments to be made to the terms and conditions of Jøtul’s existing senior secured bonds, including, inter alia, an increase in the amount of debt permitted under Jøtul’s working capital facility.

About Jøtul Group

Jøtul is one of the world’s oldest producers of stoves, inserts and fireplaces. Building on a proud Norwegian heritage, Jøtul combines fine craftsmanship with the art of coping with the cold for 160 years. Jøtul is headquartered in Fredrikstad, Norway and features four prominent brands Jøtul. Scan, Ild and Atra and proudly sells to 45 countries around the world. To learn more about Jøtul, please visit: www.jotul.com

About OpenGate Capital

OpenGate Capital is a global private equity firm specializing in the acquisition and operation of businesses to create new value through operational improvements, innovation and growth. Established in 2005, OpenGate Capital is headquartered in Los Angeles, California with a European office in Paris, France. OpenGate’s professionals possess the critical skills needed to acquire, transition, operate, build and scale successful businesses. To date, OpenGate Capital, through its legacy and fund investments, has executed more than 30 acquisitions including corporate carve-outs, management buy-outs, special situations and transactions with private sellers across North America and Europe. To learn more about OpenGate, please visit www.opengatecapital.com.

For more information, please contact:

Nils Agnar Brunborg, CEO Email: Nils.Brunborg@jotul.no

Telephone: +47 90 60 55 78