NCC acquires Superfos asphalt and ballast operations and creates Denmark€s large

NCC acquires Superfos' asphalt and ballast operations and creates Denmark's largest construction group NCC is acquiring Superfos Construction a/s, Denmark's largest asphalt and ballast company. The acquired company is to be merged with NCC's wholly owned Danish subsidiary, NCC Rasmussen & Schiøtz, thus forming what will be the clear market leader in the Danish construction sector, with annual sales of approximately SEK 6 billion. The purchase price is about SEK 1.4 billion (DKK 1,150 million) and the acquisition is expected to add about SEK 100 million annually to NCC's earnings. "We already hold a leading position in the Danish building market and we will now also become the clear market leader in the asphalt segment and substantially strengthen our position in the civil engineering sector. We're acquiring a well-run company with a high earnings capacity and a skilled management team, which will complement us so well that we anticipate annual synergy gains of approximately SEK 50 million," says Jan Sjöqvist, NCC's President and Chief Executive Officer. "The strong position that we have now created provides the potential for additional synergistic gains through continued growth in Denmark and Finland." Following the merger, the new NCC Rasmussen & Schiøtz will have annual sales of slightly more than SEK 6 billion. Its product mix will be as follows: Construction 43%, Industry (asphalt, crushed rock products and machinery) 25%, Civil Engineering 28%, International Projects 3% and Real Estate 1%. The company will have a leading position in virtually all of the segments in which NCC is currently active. Kaj Kristensen will continue to serve as president of the new group. Hans Gormsen, currently president of Superfos Construction, has been appointed executive vice president of the merged group and president of the new group's Industry business area, which includes asphalt operations. Superfos Construction had sales of approximately SEK 1.9 billion (DKK 1,552 million) in 1998 and reported income of about SEK 140 million (DKK 120 million) after net financial items. Superfos' operations comprise: Asfalt Danmark - a market leader in asphalt and highway construction, with assets including eight wholly owned and seven jointly owned asphalt plants. Annual sales: approximately SEK 700 million. Entreprenör - one of Denmark's largest landscape contractors, with annual sales of nearly SEK 500 million. Vejservice - a market leader in the service and maintenance segment, with responsibility for 1,000 kilometers of roads and for road-cleaning activities in more than 100 municipalities. Annual sales: approximately SEK 90 million. Råstoffer - Denmark's largest producer of ballast, with a nationwide network of crushing plants. Annual sales: approximately SEK 280 million. Internationella projekt - Mainly highway projects financed by Danida and the World Bank in Swaziland, Nicaragua, the Czech Republic and Lithuania. Annual sales: approximately SEK 210 million. Asfalt Finland - a 50% share in Finland's second largest asphalt operation, with 13 fixed and one mobile asphalt plants. Annual sales: approximately SEK 135 million. "The acquisition should be viewed as a powerful first step in efforts to create a major Nordic-wide industrial business in the construction sector. NCC is now the market leader in Sweden and Denmark and will also gain a strong position in Finland through the ownership interest in Valtatie," Jan Sjöqvist adds. Financial effects for the NCC Group: Purchase price approx SEK 1,400 million (DKK 1,150 m.) Income after net 1999: up approx SEK 50 million financial items including merger costs 2000: up approx SEK 100 million, since most of the synergistic benefits are expected in that year Merger costs approx SEK 18 million, to be (nonrecurring effect) charged against 1999 as a whole Earnings per share 1999: up SEK 0.25 2000: up SEK 0.50 Cash flow, year 2000 up approx SEK 120 million (including synergies) The equity/assets ratio will decrease by approximately 2.5 percentage points. Press conference Additional information will be provided at a press conference to be held at 12 noon today at the Hotel Imperial, Vester Farimagsgade 9, Copenhagen. The conference will be attended by: Jan Sjöqvist, NCC's President and Chief Executive Officer Kaj Kristensen, President of Rasmussen & Schiøtz Hans Gormsen, President of Superfos Construction ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/02/17/19990216BIT00610/bit0001.doc http://www.bit.se/bitonline/1999/02/17/19990216BIT00610/bit0002.pdf