Merging of Nordform and S: t Eriks

Nordform and S:t Eriks have now merged their operations to form one of Sweden's leading companies in paving stone, roofing, drainage and water supply system. Together, the two companies during 2008 had a total turnover exceeding SEK 900 million; whereof S:t Eriks had SEK 436 million. The new company will approximately have 400 employees, whereof 180 come from S:t Eriks.

Nordform is a wholly owned subsidiary of Segulah III, LP and S: t Eriks is a subsidiary of Peab Group.

The new company will operate under the name S: t Eriks and it will be owned by Segulah to 55 percent and Peab to 45 percent. The headquarters will be in Staffanstorp and sales and marketing function in Uppsala.

- By bringing S t Eriks and Nordform together, we create the best possible conditions for strengthening our position in the market and to develop the company, "said Mats O Paulsson, CEO of Peab Industri.

The transaction has been approved by competition authorities in Sweden, Norway and Finland. Customary negotiations with the Unions have been completed..

The transaction means that Peab net debt will be reduced by approximately SEK 200 million.



For additional information, please contact:
Mats O Paulsson, CEO Peab Industri +46 733 371005
Gösta Sjöström, CIO Peab +46 733 371010

Peab AB discloses the information provided herein pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act.
The information was submitted for publication at 11 a.m. on 31 March 2009.

Previous press releases from Peab are available at www.peab.com