FIRST DAY OF TRADING IN THE MUNTERS SHARE

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR ANY OTHER JURISDICTION IN WHICH THE DISTRIBUTION OR RELEASE WOULD BE UNLAWFUL. OTHER RESTRICTIONS ARE APPLICABLE. PLEASE SEE THE IMPORTANT INFORMATION NOTICE AT THE END OF THE PRESS RELEASE.

Munters Group AB (“Munters” or the “Company”), a leading global provider of energy efficient and mission critical precision climate control solutions for commercial and industrial applications, today announces the outcome of the Initial Public Offering of the Company’s shares (the “Offering”) and the listing of the shares on Nasdaq Stockholm. The Offering, with regard to the number of shares available[1], generated total demand in excess of SEK 50 billion, was more than 25 times oversubscribed and attracted very strong interest from both Swedish and international institutions as well as the general public in Sweden.

The Offering in brief:

• As previously announced, the price per share in the Offering was SEK 55, corresponding to a total value of the number of outstanding shares in Munters of SEK 10,098 million
• The Offering consisted of 73,439,120 shares, of which 1,872,728 new shares were issued by the Company. The remaining 71,566,392 existing shares were offered mainly by the principal shareholders: Nordic Capital Fund VII[2] and Five Arrows[3] (the “Principal Owners”). The Offering of new shares provides Munters with gross proceeds of approximately SEK 103 million
• In order to cover potential over-allotments or short positions, if any, incurred in connection with the Offering the Principal Owners have granted the Joint Global Coordinators (as defined below), on behalf of the Managers (as defined below), an option to purchase up to 8,812,694 additional existing shares (the “Over-Allotment Option”), corresponding to up to 12.0% of the number of shares in the Offering
• Assuming a full exercise of the Over-Allotment Option, the value of the Offering will amount to approximately SEK 4,524 million corresponding to approximately 44.8% of the total number of outstanding shares in Munters upon completion of the Offering
• Immediately following the completion of the Offering, and assuming that the Over-Allotment Option is exercised in full, Munters’ largest shareholders will include Nordic Capital Fund VII (50.1% of the total number of shares in Munters upon completion of the Offering), FAM AB (10.0%), Alecta Pensionsförsäkring (5.0%), AMF Fonder (5.0%), Handelsbanken Fonder (3.0%) and Carve (Brummer) (3.0%)
• Trading in the shares in Munters on Nasdaq Stockholm commences today May 19, 2017 under the ticker “MTRS” and settlement will take place on May 23, 2017

John Peter Leesi, CEO of Munters, comments:

"We are very happy and proud of the significant interest shown in Munters during the listing process. The listing will provide us with improved opportunities to continue our progress and implement our strategy to focus on customer segments where climate is mission critical. It is with great pleasure that we welcome new and old shareholders to take part in this next step in the journey – to develop Munters in a public environment.”

Christopher Curtis, Chairman of the Board of Munters, comments:

“Today the journey continues as the company is reinstated on the public arena. Thanks to a strong and highly driven leadership, Munters is now able to take the next step for further growth, creating value for the company and its shareholders. Through a broadened ownership comes an exciting challenge to continue the transformation, in order to reach the set goals. I am proud of what the company has achieved so far and we have an exciting future to meet.”

Joakim Karlsson, Partner, NC Advisory AB, advisor to the Nordic Capital Funds and board member in Munters, comments:

“Munters has developed well during Nordic Capital’s ownership and the fund has accomplished what it set out to do: to improve the Munters’ fundamental strategy and operations and set the stage for growth. On behalf of Nordic Capital’s investors, I would like to thank the fantastic management team, the board members and all of Munters’ employees for these six years of hard work resulting in a better and stronger company. The group’s revenues have almost doubled during these years, but I believe that we are only at the beginning of what will be a prosperous period as a publicly listed company.”

Lars Wedenborn, CEO of FAM AB, comments:

“As a long-term owner, FAM is very much looking forward to being part of the future development of the newly listed Munters. With a strong market position and a well-functioning organization the company is well suited to build further on its strategy.”

Advisors

Carnegie Investment Bank AB (publ) and Goldman Sachs International are Joint Global Coordinators and Joint Bookrunners (the “Joint Global Coordinators”). Danske Bank A/S Danmark Sverige Filial, Jefferies International Limited and Nordea Bank AB (publ) are Joint Bookrunners (together with the Joint Global Coordinators, the “Joint Bookrunners”). Swedbank AB (publ) is Co-Lead Manager (together with the Joint Bookrunners, the “Managers”). Rothschild and Sundling Wärn Partners are financial advisors to Nordic Capital Fund VII and the Company. Latham & Watkins and Mannheimer Swartling are legal advisors to Munters and White & Case is legal advisor to the Managers.

For further information, please contact:

John Peter Leesi, CEO Munters Group
Phone: +46 8 626 63 60

John Womack, Investor Relations
Phone: +46 706 782499

THIS INFORMATION WAS RELEASED FOR PUBLICATION AT 08:00 CET ON MAY 19 2017.

About Munters

Founded in 1955, Munters is a leading global provider of energy efficient and mission critical precision climate control solutions for commercial and industrial applications. Munters is organised in four business areas: Air Treatment, Data Centers, AgHort and Mist Elimination, and supported by Global Operations and Global Services organisations. Each of these business areas addresses a set of end markets, customer industries and applications, with an offering based on Munters’ technologies and specialist competencies.

The Company operates globally with more than 3,500 FTEs working in over 30 countries to provide Munters’ products and solutions to a diverse range of customers, including a wide range of global blue chip companies, in over 180 countries. Today, the Company has a production footprint that includes 18 major manufacturing facilities and seven assembly units across 16 countries worldwide. For the twelve months ended 31 March 2017, net sales grew by 15% period on period to SEK 6,340m, and adjusted EBITA was SEK 808m, corresponding to an adjusted EBITA margin of 12.8%. For more information see www.munters.com

About Nordic Capital

Nordic Capital private equity funds have invested in mid-market companies primarily in the Nordic region since 1989. Through committed ownership and by targeting strategic development and operational improvements, Nordic Capital enables value creation in its investments. The Nordic Capital Funds invest in companies in northern Europe and in selected investment opportunities internationally. The most recent fund is Nordic Capital Fund VIII with EUR 3.5bn in committed capital, principally provided by international institutional investors such as pension funds. The Nordic Capital Funds are based in Jersey, Channel Islands, and are advised by the NC Advisory entities in Sweden, Denmark, Finland, Norway, Germany and the UK. For more information see www.nordiccapital.com

About Five Arrows Principal Investments

Five Arrows Principal Investments is the corporate private equity business of Rothschild Merchant Banking with €1.5 billion under management. With offices in London, Paris and Luxembourg Five Arrows Principal Investments employs a pan-European investment strategy focused on investing in middle market companies which have entrenched market positions, business models with high revenue visibility and multiple untapped levers for value creation.

Important Information

This announcement does not constitute an offer to sell or a solicitation of any offer to buy any securities of Munters in any jurisdiction where such offer or sale would be unlawful.

Copies of this announcement are not being made and may not be distributed or sent into the United States, Australia, Canada, Japan or any other jurisdiction in which such distribution would be unlawful or would require registration or other measures.

In any member state within the European Economic Area (“EEA”), other than Sweden, that has implemented Directive 2003/71/EC as amended (together with any applicable implementing measures in any member State, the “Prospectus Directive”), this communication is only addressed to and is only directed to investors in that EEA member state who fulfil the criteria for exemption from the obligation to publish a prospectus, including qualified investors, within the meaning of the Prospectus Directive as implemented in each such EEA member state.

This announcement and the information contained herein are not for distribution in or into the United States. This announcement does not constitute an offer to sell, or a solicitation of an offer to purchase, any securities in the United States. Any securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold within the United States absent registration or an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. There will be no public offering of the securities described herein in the United States.

The securities described herein have also not been and will also not be registered under the applicable securities laws of Australia, Canada or Japan and, subject to certain exemptions, may not be offered or sold in or into or for the account or benefit of any person having a registered address in, or located or resident in Australia, Canada or Japan. There will be no public offering of the securities described herein in Australia, Canada or Japan.

This announcement and any other materials in relation to the securities described herein are only directed to (i) persons who are outside the United Kingdom or (ii) to investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) or (iii) high net worth companies, and other persons to whom it may be lawfully communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons in (i), (ii) and (iii) above together being referred to as “relevant persons”). The securities described herein are only available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire the securities will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on information contained herein.

The Offering to acquire or subscribe for the securities referred to in this communication is made by means of the prospectus that is provided by the Company and that contains detailed information about the Company and management, as well as financial statements. This communication is an advertisement and not a prospectus for the purposes of the Prospectus Directive. Investors should not acquire any securities referred to in this communication except on the basis of information contained in the prospectus.

Forward-looking statements

Matters discussed in this communication may constitute forward-looking statements. Forward-looking statements are statements that are not historical facts and may be identified by words such as “believe”, “expect”, “anticipate”, “intend”, “may”, “plan”, “estimate”, “will”, “should”, “could”, “aim” or “might”, or, in each case, their negative, or similar expressions. The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although the Company believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant known and unknown risks, uncertainties, contingencies and other important factors, which are difficult or impossible to predict and are beyond the Company's control. Such risks, uncertainties, contingencies and other important factors could cause actual events to differ materially from the expectations expressed or implied in this release by such forward-looking statements. The Company does not guarantee that the assumptions underlying the forward‐looking statements in this release are free from errors nor does it accept any responsibility for the future accuracy of the opinions expressed in this release or any obligation to update or revise the statements in this release to reflect subsequent events. Undue reliance should not be placed on the forward-looking statements in this document.

The information, opinions and forward-looking statements contained in this communication speak only as at its date and are subject to change without notice. The Company does not undertake any obligation to review, update, confirm or to release publicly any revisions to any forward‐looking statements to reflect events that occur or circumstances that arise in relation to the content of this communication.