Lemminkäinen divests its concrete business
LEMMINKÄINEN CORPORATION STOCK EXCHANGE RELEASE 3 JULY 2012 AT 12:45 P.M.
LEMMINKÄINEN DIVESTS ITS CONCRETE BUSINESS
Lemminkäinen and Rudus, a Finnish company in concrete and stone building materials and products, have today signed a share purchase agreement for all outstanding shares in Lemminkäinen Rakennustuotteet Oy. The transaction price is EUR 55 million, which will yield approximately 20 million in capital gain. The transaction will require regulatory approvals from the Finnish competition authorities, which is expected to be admitted in the third quarter of 2012. The transaction will have positive impact on Lemminkäinen's equity ratio. Lemminkäinen's profit guidance for 2012 remains unchanged.
The divested company is part of Lemminkäinen's Infrastructure Construction business sector and operates three business areas: precast concrete elements ("Elemento" with 5 plants), landscaping concrete products ("Formento" with 3 plants) and ready-mixed concrete (16 plants). The business' net sales in 2011 were around EUR 84 million and it has some 400 employees in Finland.
"Lemminkäinen is focusing on its key strategic growth areas, which are the Nordic infrastructure construction and residential construction in the St Petersburg area in Russia. Achieving significant growth in the concrete business would have required major investments. Now the business gets excellent development opportunities under the new ownership", says President and CEO Timo Kohtamäki.
Rudus, which has over 100 years of history, operates in Finland, the Baltic countries and Russia. It is a part of the CRH plc Group, which is an international diversified building materials group. CRH manufactures and distributes building materials and products. CRH operates in 36 countries and has 76,000 employees. Its net sales exceeded EUR 18 billion in 2011.
Timo Kohtamäki, President & CEO
Tel. +358 2071 53263
Robert Öhman, CFO
Tel. +358 2071 53515
NASDAQ OMX Helsinki
Lemminkäinen Group operates in all areas of the construction sector. The Group's operations are organised into four business sectors: building construction, infrastructure construction, technical building services and international operations. Net sales in 2011 were about EUR 2.3 billion, of which international operations accounted for roughly a third. The Group employs 8,400 people on average. Lemminkäinen Corporation's share is quoted on NASDAQ OMX Nordic Exchange Helsinki. www.lemminkainen.com