NCC divests additional subsidiaries within NCC Roads
NCC Roads has signed an agreement regarding the divestment of subsidiaries in Denmark and Norway. The companies are active within NCC Norskilt Traffic Safety and the purchaser is the Norwegian sign manufacturer Euroskilt. The divestment is in line with NCC’s strategy of focusing on its profitable core business. The transaction will have no impact on the NCC Group’s earnings.
The sold companies’ production activities are conducted in Stavanger, Norway, and their products are sold mainly in Denmark and Norway. The two companies that constitute NCC Norskilt Traffic Safety became part of the NCC Group through the acquisition of Rieber Roads in 2000. The companies had sales of approximately SEK 70 million in 2004, with about 35 employees. The companies’ operations consist mainly of sales of various products and services involving traffic information, motorist safety and road-worker safety. “Since conducting and developing this type of operation is not compatible with our strategy of concentrating on our core asphalt, aggregate and paving business, divesting the companies was a logical decision,” says Tomas Carlsson, manager of NCC Roads’ New Markets business unit. The sale is subject to the approval of the Norwegian competition authorities. The transaction will be reported during the second quarter. NCC’s strategy of concentrating on its profitable core business has previously resulted in the divestment of, among other assets, concrete operations and road-marking activities, and most recently the sale of Skifer og Naturstein of Norway at the end of 2004. For further information, please contact: Tomas Carlsson, Manager of NCC Roads` New Markets, +46 8 585 516 45, +46 (0)70 552 92 75 Annica Gerentz, SvP Corporate Communications, NCC Group, +46 8 585 5522 04, +46 (0)70 398 42 09