Nordisk Bergteknik intends to acquire Power Mining and establish in Finland

Nordisk Bergteknik has entered into a letter of intent regarding the acquisition of all shares in the Finnish company Power Mining Oy ("Power Mining"), including the Swedish subsidiary Power Mining Sverige AB. Power Mining has sales of approximately SEK 160 million on annual basis, with an EBIT margin that was very strong during the last financial year and amounted to approximately 20%. Through the acquisition, Nordisk Bergteknik establishes in Finland, at the same time as the offer in Sweden is further supplemented and strengthened, not least towards the mining industry. The ambition is for the deal to be finalized and for the acquisition to be completed during the first quarter of 2023.

Power Mining operates in both Finland and Sweden and is a complete supplier in underground and tunnel work and currently has around 45 employees. The company's clients are mainly found in the infrastructure sector and in the mining industry.

“By acquiring Power Mining, we establish in Finland, which is a market similar to the Swedish one and a natural step in our geographical expansion and in line with our growth strategy. Power Mining is a well-established company with specialist competence in its field. The company also has high profitability and very low indebtedness, which contributes to strengthening the group's cash flow and financial position over time. By acquiring Power Mining, we are taking a step into the Finnish market, and we are also creating good conditions for further growth in Finland", says Andreas Christoffersson, CEO Nordisk Bergteknik.

The agreed preliminary purchase price amounts to EUR 12.2 million (corresponding to approximately SEK 135 million) with a possible additional purchase price of a maximum of EUR 4 million (corresponding to approximately SEK 44 million) which may be added depending on Power Mining's financial development over the next three years. The acquisition will be financed through own cash, existing credit facility and a seller promissory note, while parts of the purchase price will be reinvested in Nordisk Bergteknik in the form of shares, whereby the current owners become long-term owners in Nordisk Bergteknik. Power Mining is estimated to contribute approximately SEK 0.50 on earnings per share on annual basis based on the expected number of outstanding shares after the acquisition. The parties' ambition is for the deal to be finalized and to complete the acquisition during the first quarter of 2023.

This is information that Nordisk Bergteknik AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted, through the care of the contact persons below, for publication on 22 December 2022 at 11:30 CET.
 

For further information, contact:
Andreas Christoffersson, CEO, +46 70-621 19 28, andreas.christoffersson@bergteknikgroup.com
Johan Lundqvist, CFO, +46 76-392 71 21, johan.lundqvist@bergteknikgroup.com

About Nordisk Bergteknik
Nordisk Bergteknik has a clear growth strategy with the objective to contribute to the development of a future sustainable society. Our companies are specialists within rock handling and foundation solutions, and through compassion and skill they are able to combine demand with the surrounding natural conditions. To be involved at an early stage in building modern societal functions is our everyday life, our home ground and our future.