Veidekke ASA :Veidekke buys Swedish contractor

Veidekke has strengthened its market position in Sweden by buying the Stockholm based contractor Arcona AB, which has 180 employees and an annual turnover of SEK 1 billion. The acquisition also includes majority shareholdings in the companies Exengo Installationskonsult and BSK Arkitekter.

Veidekke and Arcona have signed a letter of intent under which Veidekke acquires all shares in Arcona by year end. The agreed purchase price is approximately NOK 150 million. For Veidekke, this acquisition marks a further step towards the goal of growing in Sweden, and especially in the Stockholm region.

"We are very glad to have Arcona as part of the team. The customer portfolios of the two companies complement each other, and this acquisition will increase our market potential and our possibility of competing for large projects," says Veidekke CEO Arne Giske.

Arcona's main activity is in commercial building and residential development (Arcona Consept). It uses lean construction in its work, which complements Veidekke's focus on process involvement. "This acquisition also gives us access to specialist competence in architectural services and technical installations through BSK Arkitekter and Exengo Installationskonsult, which will strengthen the group's combined development potential," concludes Giske.

Arcona, BSK Arkitekter and Exengo Installationskonsult will continue to operate as independent entities under their existing brands, but organisationally they will be subsidiaries of Veidekke Entreprenad.

For more information please contact:
President and CEO Arne Giske, tel +47 21 05 50 00 / +47 90 58 95 26, arne.giske@veidekke.no
Executive Vice President Per-Ingemar Persson, tel +46 70 514 42 40, per-ingemar.persson@veidekke.no
Communications Director Grete Nykkelmo, tlf +47 21 05 77 47/ +47 913 11 000, grete.nykkelmo@veidekke.no

Veidekke is one of Scandinavia's leading contractors and property developers with a turnover of NOK 20 billion (2012) and 6,300 employees. Activities include building and construction projects, residential developments, asphalt plants, gravel and aggregates, and road services. Our values are professional, honest, enthusiastic and ground-breaking. Our goals for health, safety and the environment, HSE, have equal status with our financial goals. Veidekke is characterised by a strong corporate culture with employee involvement and co-ownership as important cornerstones. More than half of the employees are co-owners, holding around 20 per cent of the Group's shares between them. The company is listed on the Oslo Stock Exchange and has always posted a profit since it was founded in 1936.

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.