Lemminkäinen divests its roofing operations to Axcel
LEMMINKÄINEN CORPORATION STOCK EXCHANGE RELEASE 15 DECEMBER 2010 AT 12.50 P.M.
LEMMINKÄINEN DIVESTS ITS ROOFING OPERATIONS TO AXCEL
Lemminkäinen and Axcel, a Nordic private equity fund with offices in Stockholm and Copenhagen, have today signed a business purchase agreement of the assets of Lemminkäinen's roofing operations. The transaction price is approximately EUR 25 million, which will yield approximately EUR 17 million capital gain. The transaction will require regulatory approvals from the Finnish competition authorities, and is expected to be finalized in the first quarter of 2011.
The roofing business is part of Lemminkäinen's Building Products business sector, and comprises of manufacturing Kerabit shingles and bitumen membranes as well as related contracting services. The estimated 2010 net sales of the business is approximately EUR 60 million, and the business has some 400 employees on average.
"The divestment is in line with our strategic goals: to focus on selected growth businesses and to streamline our corporate structure and offering", says President and CEO Timo Kohtamäki. "The Scandinavian roofing markets are very fragmented. Achieving significant growth with our current roofing business would have required major investments. We believe that the business has much better growth and development opportunities under a more focused ownership."
Axcel, which was founded in 1994, focuses on developing medium-sized Nordic companies. Axcel announced in the beginning of December 2010 that it has acquired the roofing operations of the Swedish industrial company Trelleborg.
President & CEO Timo Kohtamäki
Tel. +358 2071 53263
CFO Robert Öhman
Tel. +358 2071 53515
Director Vilhelm Sundström
Tel: +46 8442 5390
NASDAQ OMX Helsinki Ltd
Lemminkäinen Group operates in all areas of the construction sector. The Group's business sectors are Building Construction, Infrastructure Construction, Technical Building Services, and Building Products. Net sales in 2009 were approx. EUR 2.0 billion, of which international operations accounted for over a quarter. The Group employs about 8,600 people. Lemminkäinen Corporation's share is quoted on NASDAQ OMX Helsinki Ltd. www.lemminkainen.com
Axcel was founded in 1994 and now has a wide range of Nordic and international investors. Axcel focuses on medium-sized companies in the Nordic region. Axcel has a total committed capital of approximately SEK 12 billion via four private equity funds. With 35 investments, Axcel has made more investments in medium-sized Danish companies than any other private equity fund in Denmark. So far, 19 of the companies in which Axcel has invested have been further developed and sold. Today Axcel's investments comprise 16 companies with an overall turnover of approximately SEK 16 billion and 13.000 employees. Since its inception, Axcel has built a comprehensive industrial network, not least by making around 40 major international add-on acquisitions. www.axcel.dk