Lemminkäinen's Mesta Industri acquisition completed
LEMMINKÄINEN CORPORATION STOCK EXCHANGE RELEASE 31 May 2011 at 3.30 p.m.
LEMMINKÄINEN'S MESTA INDUSTRI ACQUISITION COMPLETED
Lemminkäinen's Mesta Industri acquisition was completed today, 31 May 2011. Lemminkäinen acquires 100% of the shares of Mesta Industri AS from Mesta Group, a Norwegian state-owned company. The transaction price is approximately EUR 11 million, which will be paid in cash. The acquisition takes effect immediately. The corporate acquisition will have a slight positive bearing on Lemminkäinen Group's 2011 results.
The 2010 net sales of Mesta Industri were approximately EUR 50 million and the business has some 170 employees on average. For this period, Mesta Industri has won paving contracts worth about EUR 56 million from the state of Norway. This is approximately 24 per cent of all state-financed paving contracts, amounting to a total of EUR 220 million. Combined, Mesta's and Lemminkäinen's share of the paving contracts from the state of Norway is approximately EUR 82 million.
"This corporate acquisition is an important step in strengthening the position of Lemminkäinen Group in the growing Nordic infrastructure construction market, which is one of our strategic growth areas," says Timo Kohtamäki, President & CEO, Lemminkäinen Corporation.
Lemminkäinen has been in the infrastructure business in Norway since 2001. Following the acquisition, Lemminkäinen will be among the three largest paving contractors in Norway.
The Norwegian Competition Authority approved the corporate acquisition on 16 May 2011. The condition for completion of the deal was that Lemminkäinen divest its fixed asphalt mixing plant in Harstad, northern Norway.
Lemminkäinen's previous announcements on the corporate acquisition and its progress were given on 17 December 2010, 31 March 2011, and 16 May 2011.
Timo Kohtamäki, President and CEO
Tel. +358 2071 53263
Robert Öhman, CFO
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 and Technical Building Services. Net sales in 2010 were around EUR 2.0 billion, of which international operations accounted for roughly a quarter. The Group employs about 8,300 people. Lemminkäinen Corporation's share is quoted on NASDAQ OMX Helsinki Ltd. www.lemminkainen.com