VEIDEKKE HAS ACQUIRED 85% OF BR. REME IN KRISTIANSAND
Br. Reme is one of the largest construction companies in the southern parts of Norway. Its head office is in Kristiansand with branch offices in Vigeland and Arendal. The company is a major player in the building market.
In later years, Br. Reme AS ' annual turnover has been approximately NOK 300 million and the profit margin about 10%. In 2000, turnover is estimated at approximately NOK 350 million. Total orders-on-hand are NOK 350 million. The company has 180 employees, of which 130 are craftsmen and 20 apprentices. The operations of Br. Reme AS will continue as a public company under the same name and management.
Strengthened market position
- By acquiring Br. Reme, we have secured a strong market position for Veidekke in the southern parts of Norway, says Petter Eiken, head of Veidekke's regional building operations. - The region is very interesting, and high activity is expected in the building market in the near future, he says.
- In the past few years, a lot of acquisitions and mergers have taken place in the south Norway and elsewhere in the country. Foreign companies, such as Skanska and NCC, have bought big Norwegian companies, Selmer and Eeg Henriksen, respectively. That's why we have found it wise to enter into co-operation with Veidekke, which is the biggest Norwegian owned construction company, says Managing Director Helge Reme.
- In the years to come, there will be a considerable market for building and construction in the southern parts of Norway, and we feel that this new ownership constellation will strengthen our position, especially where heavy construction operations are concerned, he says.
Ownership
The take-over will be effected by a rights issue to Veidekke based on a company value of NOK 125 million. The operations of the Property Department of Br. Reme will continue as a separate company.
After the share issue Veidekke will own 85% of the construction company.