Green Landscaping completes the acquisition of Svensk Markservice
Green Landscaping Holding AB (publ) has today taken ownership of all outstanding shares in Svensk Markservice AB.
As previously announced Green Landscaping has signed an agreement to acquire Svensk Markservice, thereby creating a nationwide ground maintenance and landscaping service provider. On 21 November, the Swedish Competition Authority's approval was received, and transfer of the shares has been made today.
Svensk Markservice was founded in 1991 and is a Swedish provider of grounds maintenance services active across Sweden. The company reported adjusted total revenue of approximately SEK 879 million, adjusted EBITDA of approximately SEK 53 million and adjusted EBITA of approximately SEK 27 million for the last twelve months as of August 2018*.
The integration starts immediately. Integration costs of approximately SEK 20 million are expected to have non-recurring EBITDA impact, with the main part of the non-recurring costs impacting 2019. The acquisition is expected to be EPS accretive from 2019. Total annual run rate cost synergies are estimated to be approximately SEK 25 million. The synergies are expected to be fully realised by the end of 2020.
"I am very pleased to complete the acquisition of Svensk Markservice. We will immediately start the integration work, in which we, in close dialogue with the company's employees, customers and partners, will implement a plan with the customer's needs in focus. As previously announced, we see significant synergies through improved sourcing, better utilisation and increased efficiency. Our aim with this acquisition is to deliver even greater value to our customers and society in large”, said Johan Nordström, CEO of Green Landscaping.
For further information:
Johan Nordström, CEO, Green Landscaping, +46 708 38 58 12
Carl-Fredrik Meijer, CFO, Green Landscaping, +46 701 08 70 19
This is information that Green Landscaping Holding AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 14.30 CET on 29 November 2018.
Green Landscaping Group is the #1 landscaping service provider in Sweden. Our business idea is to refine our customers’ outdoor environments by offering services focused on high customer value, long-term sustainability and quality. The group has approximately 650 employees and sales amount to around SEK 1 billion. The company’s shares are listed on Nasdaq First North with ticker GREEN. Pareto Securities AB acts as Certified Adviser. For more information, please visit www.greenlandscapinggroup.se.
Statements in this press release relating to future status and circumstances, including statements regarding future performance, growth and other projections as well as benefits of the acquisition, are forward-looking statements. These statements may generally, but not always, be identified by the use of words such as “expects”, or similar expressions. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. Actual results may differ materially from those expressed or implied by these forward-looking statements due to many factors, many of which are outside the control of Green Landscaping. Such factors may include Green Landscaping’s ability to successfully complete the acquisition, integrate the Svensk Markservice into its operations and implement its acquisition strategy. You should not place undue reliance on forward-looking statements. They speak only as at the date of this press release and Green Landscaping undertakes no obligation to update these forward-looking statements.
*Total revenue, EBITDA and EBITA adjusted for acquisitions, discontinued operations and non-recurring items