Lehto Group Plc to Acquire Entire Share Capital of Building Renovation Company Rakennus Oy Wareco
Lehto Group Oyj Stock Exchange Release October 3, 2016 at 10.00:00 CET
Lehto Group Plc to Acquire Entire Share Capital of Building Renovation Company Rakennus Oy Wareco
Lehto Group Plc ("Lehto") has acquired the entire share capital of Rakennus Oy Wareco ("Wareco") by agreement signed on October 3, 2016. Wareco is a building renovation company operating in Finnish capital region, operating in real estate renovations, plumbing services of apartment house companies, renovation and modification projects for facades as well as accessory and complementary building. The personnel of Wareco has several decades' experience in building renovation.
The acquisition supports the growth targets of Lehto. Through the acquisition Lehto strengthens and expands its business in building renovation and gets more professional personnel for example for large renovation projects and plumbing renovations.
Wareco employs 70 persons and its net sales in 2015 was 28.7 million euros and the operating profit was 0.7 million euros.
The purchase price of the shares on a debt and cash free basis is about 2.6 million euros. The exact purchase price will be confirmed as the interim financial statements of the time of transaction will be finished. Lehto will also pay additional purchase price on the basis of the profit that Wareco will achieve in 2016, 2017 and 2018. The purchase price will be paid in cash from Lehto's cash reserves.
The acquisition does not have a significant effect neither on the profit nor the financial position of Lehto in 2016 and it will not change the previous financial outlook for 2016 published by Lehto.
For more information:
Hannu Lehto, CEO
+ 358 500 280 448
hannu.lehto@lehto.fi
Veli-Pekka Paloranta, CFO
+ 358 400 944 074
veli-pekka.paloranta@lehto.fi
Lehto Group in brief
Lehto Group is a Finnish construction and real estate group focusing on economically driven construction. The company's mission is to be an innovative reformer of the construction industry. The company has divided its operations into four service areas: Business Premises, Housing, Social Care and Educational Premises and Building Renovation. Lehto Group currently operates in Finland and is geographically concentrated in growth centres which form a significant part of the construction volume. The company's headquarters are located in Kempele. The company's net sales in financial year 2015 was approx. EUR 276 million and the company employed 423 people at the end of the financial year 2015.
www.lehto.fi