After a letter of intent announcing the acquisition was published 20 May 2024, due diligence has been completed, and the parties have signed final agreements.
“The Euromining acquisition strengthens Veidekke's position in a region boasting considerable activity and exciting prospects. Euromining has robust operations and a good order book, and has had a strong financial development. When coupled with Veidekke's existing operations, this constitutes a good basis for parttaking in this region’s expected growth in the upcoming years,” says Jimmy Bengtsson, CEO of Veidekke ASA.
Established in 1999, the Euromining group has 200 employees, an annual turnover of approximately SEK 750 million and an operating profit of approximately SEK 90 million.
The company specialises in ore loading and transporting, with the majority of its operations in the Malmfälten mining district, which includes Gällivare and Kiruna. Euromining's largest customer is LKAB, which has extensive operations in the northern Sweden mining industry.
“The mining industry, in which Veidekke already has a strong position, is the by far largest and most important industry in northern Sweden. We have cooperated with Euromining on several projects, and both operations and culture are a good fit with Veidekke's plans in the region,” says Marcus C Nilsson, EVP Veidekke Infrastructure Sweden.
Veidekke is acquiring 100% of the shares through cash settlement. Euromining’s current owners will remain involved in the business. The agreed purchase price corresponds to a company value of approximately SEK 500 million on a debt-free basis. A significant part of of the amount is dependent on the results achieved for the years 2024 to 2026. Veidekke is financing the cash payments with liquid assets.
Completion of the acquisition requires approval from competition authorities and other relevant authorities and will take place once approval has been granted, which is expected to be in the third quarter 2024.
This information is subject to a disclosure duty pursuant to section 5-12 of the Securities Trading Act.
For more information, contact:
- Jimmy Bengtsson, CEO Veidekke ASA +47 984 70 000
- Marcus C Nilsson, EVP Veidekke Infrastructure Sweden, +46 76 840 05 56
- Jørgen Wiese Porsmyr, CFO Veidekke ASA, +47 907 59 058
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Veidekke is one of Scandinavia's largest contractors. In addition to undertaking all types of building and civil engineering assignments, the group also maintains roads and produces asphalt and aggregates. Veidekke emphasises stakeholder involvement and local experience. Its annual turnover is approximately NOK 43 billion, and half of its 8,000 employees own shares in the company. Veidekke is listed on the Oslo Stock Exchange, and has posted a profit every year since its inception in 1936.