Veidekke has entered into an agreement with Altor Fund III (Altor) for the sale of 100% of the shares of Veidekke Gjenvinning as. Altor announced the acquisition of Veolia Miljø AS on 15 February 2011. Veidekke Gjenvinning will complement Veolia Miljø in Altor's drive in the Norwegian recycling market.
"In the future, players must be capable of offering the market the best possible service and future-oriented technological solutions. Veidekke has considered different development paths for Veidekke Gjenvinning and concluded that further professionalism and improved profitability best can be achieved through Altor's efforts. Altor has the ambitions, resources and expertise to further develop and refine Veidekke Gjenvinning. It was therefore a natural choice for the Veidekke Group to sell the operation," says CEO Terje R. Venold of Veidekke ASA. "Veidekke is proud to have established and developed a sound and significant operation in this area," Venold adds.
Veidekke Gjenvinning was established in 1997 and has through a combination of organic growth and acquisitions gradually grown into a leading recycling operation with focus on treating industrial waste in eastern Norway and in Rogaland, Norway. Throughout these years the customers' expectations toward good environmental solutions and the authorities' tightening requirements toward the handling of waste has driven the recycling market toward larger, professional industrial units.
In organizational terms, Veidekke Gjenvinning has been a part of Veidekke Industry. In 2010 the company's turnover was NOK 410 million and profit before tax (EBT) was NOK 21 million. There are 143 employees. Further financial figures for Veidekke Gjenvinning may be found in the attached table.
The total purchase amount is NOK 326 million. For Veidekke the transaction entails an accounting profit of approx. NOK 105 million and a positive net effect on net interest-bearing debt of NOK 310 million.
Due diligence of Veidekke Gjenvinning has been completed. The agreement is subject to approval from the the Norwegian Competition Authority and takeover will therefore only take place once such approval has been granted.
Veidekke has sound financial capacity, which will be further strengthened by this transaction. The group takes a positive view of market developments in the building and construction markets in Scandinavia and believes in good business opportunities for the group's remaining business areas.
Contact persons:
Jørgen Wiese Porsmyr, Executive Vice Presiden and CFO, Veidekke ASA,
tel. +47 21 05 76 44 / + 47 90 75 90 58, jorgen.wiese-porsmyr@veidekke.no
Kai Krüger Henriksen, Senior Vice President Communication, Veidekke ASA,
tel. +47 21 05 50 00 / +47 90 51 93 60, kai.henriksen@veidekke.no
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| Financial Key Figures Veidekke Gjenvinning |