Veidekke sells Veidekke Gjenvinning at significant profit
Over the course of several years Veidekke has developed a sound recycling operation in Veidekke Gjenvinning AS. Through the sale to Altor Fund III, the operation has been given an opportunity for further growth and development, and Veidekke can convert the value that has been developed into cash.
Veidekke has entered into an agreement with Altor Fund III (Altor) for the sale of 100% of the shares of Veidekke Gjenvinning AS. Altor previously announced the acquisition of Veolia Miljø AS on 15 February 2011. Veidekke Gjenvinning will complement Veolia Miljø in Altor's drive in the Norwegian market. Combined, the two companies will represent an efficient and future-oriented waste recycling unit.
"In the future, players must be capable of offering the market the best possible service and future-oriented technological solutions. Veidekke has considered different development paths for Veidekke Gjenvinning and concluded that further professionalism and improved profitability best can be achieved through Altor's efforts. Altor has the ambitions, resources and expertise to further develop and refine Veidekke Gjenvinning. It was therefore a natural choice for the Veidekke Group to sell the operation," says CEO Terje R. Venold of Veidekke ASA.
"Veidekke is proud to have established and developed a sound and significant operation in this area. Many years of hard work and efforts from numerous employees have contributed toward the company's current position. It will be very exciting to follow the company's subsequent development as a part of Norway's leading recycling operation," Venold says.
"Veidekke Gjenvinning AS is a well-run and exciting company. We are very happy to be in a position to develop the company in cooperation with its employees. Veidekke Gjenvinning AS is a perfect fit for Veolia Miljø AS, and combined the new operation will be an efficient and future-oriented unit," says Reynir Indahl, partner of Altor Equity Partners.
Veidekke Gjenvinning was established in 1997 and has through a combination of organic growth and acquisitions gradually grown into a leading recycling operation with focus on treating industrial waste in eastern Norway and in Rogaland, Norway. Among others, operations are carried out through subsidiaries Wilhelmsen & Sønner as and Humlekjær Ødegård as. Throughout these years the customers' expectations toward sound environmental solutions and the authorities' tightening requirements toward the handling of waste has driven the recycling market toward larger, more professional industrial units.
In organizational terms Veidekke Gjenvinning has been a part of Veidekke Industri. In 2010 the company's turnover was NOK 410 million and profit before tax (EBT) was NOK 21 million. There are 143 employees.
The total purchase amount is NOK 326 million. For Veidekke the transaction entails an accounting profit of approx. NOK 105 million and a positive effect on interest bearing debt of NOK 310 million.
Due diligence of Veidekke Gjenvinning has been completed. The agreement is subject to approval from the the Norwegian Competition Authority and takeover will therefore only take place once such approval has been granted.
Veidekke has sound financial capacity, which will be further strengthened by this transaction. The group takes a positive view of market developments in the building and construction markets in Scandinavia and believes in good business opportunities for the group's remaining business areas.
Contact persons:
Jørgen Wiese Porsmyr, Executive Vice President and CFO, Veidekke ASA,
tel. +47 21 05 76 44 / + 47 90 75 90 58, jorgen.wiese-porsmyr@veidekke.no
Kai Krüger Henriksen, Senior Vice President Communication, Veidekke ASA,
tel. +47 21 05 50 00 / +47 90 51 93 60, kai.henriksen@veidekke.no
Veidekke is one of Scandinavia's largest contractors with 6,100 employees and a turnover of NOK 16.3 billion (2010). Activities include building and construction projects, residential developments, asphalt plants, gravel and aggregates, road maintenance and recycling. Our values are professional, honest, enthusiastic and pioneering. Our goals for health, safety and the environment, HSE, have equal status with our financial goals. Veidekke is characterized by a decentralized organizational model with a strong corporate culture and a high degree of employee involvement. Over half the employees are co-owners, holding almost 20% of Veidekke's shares between them. The company is listed on the Oslo Stock Exchange and has never declared a loss since it was founded in 1936.