NCC divests Road Services Sweden and Finland to Mutares
NCC divests the Swedish and Finnish part of the Road Services division to the German based holding company Mutares (Frankfurt Stock Exchange: MUX). The transaction will have a marginal negative effect on NCC earnings and a marginal positive effect on the cash flow in the third quarter.
NCC has been preparing for divestment of the Road Services division since 2018 since it has few synergies with other parts of the business and has been loss-making. Earlier this month NCC announced the divestment of the Road Services business in Denmark to Arkil A/S.
“Divesting the Road Services division is part of our plan to focus on our core activities. Mutares will provide the Swedish and Finnish parts of Road Services with a good platform for future development,” says Tomas Carlsson, CEO of NCC.
“We are very much looking forward to taking over the Swedish and Finnish Road Services businesses of NCC and further develop them. I am confident that with our expertise and our recent expansion into the Nordics region we have the capabilities and are the right partner for the sustainable future of the companies,“ said Robin Laik, CEO of Mutares.
The transaction is done through a share purchase agreement and closing is expected in the third quarter 2020. The transaction is subject to customary filing with the Swedish Competition Authorities.
In October 2018, NCC communicated its ambition to divest the Road Services division. The division has few synergies with other parts of NCC and profitability has been low over a number of years, but the business has potential to develop well with the right owner. In December 2018 the road safety part, named ViaSafe Sweden, was sold to Ramudden. On July 3, 2020, NCC announced the divestment of its Danish Road Services operations to Arkil A/S.
NCC will continue to look for opportunities to divest the small Norwegian part of Road Services.
About Mutares Mutares is a holding company that acquires medium sized companies with a potential for improvement. It was established in 2008 and has some 90 co-workers in six offices across Europe. Mutares is listed on the Frankfurt Stock Exchange.
About NCC. Our vision is to renew our industry and provide superior sustainable solutions. NCC is one of the leading companies in the Nordics within construction, infrastructure and property development, with sales of approximately SEK 57 billion and 15,500 employees in 2019. The NCC share is listed on Nasdaq Stockholm.