Lemminkäinen divests its technical building services business to Are
LEMMINKÄINEN CORPORATION STOCK EXCHANGE RELEASE 14 MAY 2014 AT 1.15 P.M.
LEMMINKÄINEN DIVESTS ITS TECHNICAL BUILDING SERVICES BUSINESS TO ARE
Lemminkäinen Corporation and Are Oy, a company that provides maintenance and upkeep as well as contracting for office and commercial premises, and residential properties, have today signed a share purchase agreement for all outstanding shares in Lemminkäinen Talotekniikka Oy. The debt and cash free purchase price is EUR 60 million. The price will be paid in cash. Lemminkäinen will record a significant capital gain from the transaction, which will have a positive impact on Lemminkäinen's equity ratio. The capital gain will be specified, after the transaction has been finalised. The realisation of the transaction will require approval from the Finnish Competition and Consumer Authority, which Lemminkäinen expects to be admitted by June 2014. Lemminkäinen's profit guidance for 2014 remains unchanged.
Lemmikäinen Talotekniikka Oy forms Lemminkäinen’s Technical Building Services business segment. In 2013, the segment’s net sales was EUR 221.9 million (around 10% of Lemminkäinen Group’s net sales), operating profit EUR -1.6 million and number of personnel is around 1,700.
In October 2013 in connection with closer examination of its strategy, Lemminkäinen announced that it will examine the strategic options for its technical building services. “We decided to focus on building construction and infrastructure construction. The divestment will clarify our business portfolio and concentrate the development of Lemminkäinen to these areas. It will also increase our financial flexibility,” says Berndt Brunow, Interim President and CEO at Lemminkäinen. “The transaction brings together the best upkeep and maintenance as well as contracting professionals and creates a strong domestic expert. For customers, this means better services and for personnel new development opportunities.”
”The transaction enhances Are’s services and competitiveness. After the transaction, we can provide technical property services and contracting solutions in 24 locations in Finland. The office network and competences of these two companies complement each other, so we will be even closer to our customers. We will offer the best technical solutions of the industry and develop our services continuously," says Heikki Pesu, CEO at Are.
Ilkka Salonen, Interim CFO
Tel. +358 2071 54524
Katri Sundström, Vice President, Investor Relations
Tel. +358 2071 54813
NASDAQ OMX Helsinki
Together with our customers we create conditions that make living, working and travelling functional, safe and healthy. We operate in northern Europe and employ about 7,800 experts. In 2013, our net sales were about EUR 2.2 billion. Lemminkäinen Corporation's share is quoted on NASDAQ OMX Nordic Exchange Helsinki. www.lemminkainen.com
Are Group, which is part of Onvest Group, improves significantly the energy efficiency of office and commercial premises and residential properties. It also improves the well-being of the end-users by developing and providing innovative property services and contracting solutions for the entire life cycle of the real estate. The company invests especially in smart technical maintenance and its Sensus concept, which it has developed for contracting. In 2013, Are’s net sales were EUR 165 million and operating profit EUR 2.5 million. By the end of year 2013, the company employed 1,235 persons in Finland and St Petersburg. www.are.fi
The Onvest Group is a significant Finnish family company, with a history stretching back for a century. The ownership of the company has stayed within the same family since it was founded. The Onvest Group's operations are comprised of four business areas: technical trade, building services contracting, property and renovation services, investment and property activities. In 2013, Onvest’s net sales were EUR 1.7 billion and it provides roughly 4,200 jobs in eight countries. www.onvest.fi