Saferoad Holding ASA divests Water & Sewage business in Sweden
Oslo, 22 June 2017: Saferoad Holding ASA ("Saferoad" or the "Group") has entered
into an agreement to divest its Water & Sewage business in Sweden to Ahlsell AB.
The agreement also includes a cooperation agreement with Ahlsell for the
distribution of Saferoad's advanced geotechnical products used in small and
medium-sized construction projects in Norway and Sweden.
The Swedish Water & Sewage business started its operations in 2004 and became
part of Saferoad in 2011 through the acquisition of ViaCon. It has established a
strong position with several major customers in the construction sector and has
annual sales of approximately SEK 320 million, with 81 employees at 11 locations
Water & Sewage is not a part of Saferoad's core offering across its geographical
footprint, and this transaction will have an immediate positive impact on the
Group's EBITDA margin. The gross cash proceeds will be approximately SEK 90
million, depending on the value of inventory at closing, and the transaction is
expected to result in a minor accounting gain.
"This divestment is a strategic step towards focusing Saferoad's core business
and enhancing Group margins, and the transaction releases resources to drive
value in our other business areas", says Morten Holum, CEO in Saferoad.
"The acquisition adds valuable expertise and strengthens our initiatives
directed to attractive customer segments within construction and
infrastructure", says Johan Nilsson, President and CEO of Ahlsell Group.
The transaction is structured as a transfer of assets including inventories,
equipment and immaterial property related to the Swedish Water & Sewage
operations of Saferoad's subsidiary, ViaCon AB, which is part of the Road
Infrastructure Nordic division.
The transaction is planned to close in September 2017 and is subject to approval
by the Swedish Competition Authority.
For more information, please contact:
Morten Holum, CEO
+47 99 50 99 30
Saferoad is a leading supplier of road safety and road infrastructure solutions
in Northern, Central and Eastern Europe.
The Group´s core business comprises design, manufacturing, sales and
installation of a wide range of products and solutions that improve the standard
of road safety and road infrastructure. Saferoad plays an important role in
various stages of new road construction projects as well as within maintenance
and upgrades of existing roads. Typical product areas include road restraint
systems, signs, light poles, road marking and work zone protection within road
safety, and soil steel bridges, pipes and culverts and geosynthetics within road
Saferoad is headquartered in Oslo, Norway and employs approximately 2,700
employees across 20 countries in Europe.