Lemminkäinen strengthens its position on Norway's infrastructure market with the acquisition of Norwegian Mesta Industri AS
LEMMINKÄINEN CORPORATION STOCK EXCHANGE RELEASE 17.12.2010 AT 4.20 P.M.
LEMMINKÄINEN STRENGTHENS ITS POSITION ON NORWAY’S INFRASTRUCTURE MARKET WITH THE ACQUISITION OF NORWEGIAN MESTA INDUSTRI AS
Lemminkäinen has today signed an agreement for the acquisition of 100% of the shares of Mesta Industri AS (at present Mesta Asfalt AS, name change pending), a Norwegian infrastructure construction company, from Mesta Group. The transaction price is EUR 14.8 million. The acquisition will require regulatory approvals from the Norwegian competition authorities. Lemminkäinen estimates that the transaction will be closed during the first quarter of 2011.
Mesta Group, which is fully owned by the state of Norway, is among the country's largest contractors within construction and maintenance of roads. The acquired subsidiary Mesta Industri AS operates widely in the Norwegian asphalt and mineral aggregates business sectors. The estimated 2010 net sales of Mesta Industri is approximately EUR 50 million, and the business has some 170 employees on average. Mesta Industri AS was established in 2010 by merger of Mesta Stein AS into Mesta Asfalt AS, both 100% subsidiaries of Mesta Group.
'Nordic infrastructure construction is one of our strategic growth areas. This acquisition strengthens Lemminkäinen’s market position as a major infrastructure contractor in Norway,' says Timo Kohtamäki, President & CEO, Lemminkäinen Corporation. 'Mesta Industri, with nation-wide coverage, good mobile fleet of equipment and experienced operational staff, offers an excellent strategic fit for our current operations in Norway. After the acquisition we will be able to reach our customers even better and can guarantee them a more flexible and fuller-scale offering in the asphalt and mineral aggregates business sectors.'
Lemminkäinen has been in the paving and mineral aggregates business in Norway since 2001. Lemminkäinen Norge AS's net sales in 2009 were approx. EUR 120 million. After the acquisition Lemminkäinen will be among the three largest paving contractors in Norway.
President & CEO Timo Kohtamäki
Tel. +358 2071 53263
CFO Robert Öhman
Tel. +358 2071 53515
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. As of 1 January 2011, the operations of Building Products will be transferred to the Infrastructure Construction business sector. Lemminkäinen's 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