This information is disclosed in accordance with the Securities Markets Act, the Financial Instruments Trading Act or demands made in the exchange rules.
Ratos has signed an agreement to acquire approximately 73% of the shares in the Norwegian construction company HENT. The enterprise value for 100% of the company amounts to approximately NOK 450m. Ratos will provide equity of approximately NOK 310m. The sellers are the Norwegian company Heimdal Gruppen and a number of financial investors.
HENT is Norway's fifth largest construction company with projects throughout the country, primarily new construction of public and commercial properties. The company focuses on project development, project management and procurement and the projects are to a large extent carried out by a broad network of quality assured sub-contractors. Today HENT is owned by the Norwegian housing developer Heimdal Gruppen (36%), the company's management (22%) and a number of financial investors (Bergan AS, Nordenfjeldske Management AS, Consensus Invest AS, and Karpus AS). Ratos is acquiring approximately 73% of the company and management will increase their holding to approximately 27% in conjunction with this transaction.
The construction market in Norway has good structural growth and is driven by a strong underlying private and public economy, demographic growth and the trend towards urbanisation. HENT has grown fast with good profitability and has continuously strengthened its market position in recent years. The company's order book ahead of 2013-2015 totals NOK 7.9 billion. HENT has had an average annual sales growth of 16% since 2007 and sales in 2012 totalled approximately NOK 2.9 billion with an operating profit (EBITA) of NOK 98m. The company has approximately 490 employees.
Ratos's CEO, Susanna Campbell, comments: "HENT has a focused business model with a flexible cost structure and a strong position in the growing Norwegian construction market. The company has successfully won many projects and today has a record-size order book which provides good visibility for sales development in the years ahead. The construction market is cyclical but the business model gives the company good opportunities to adapt costs to demand and manage fluctuations in the sector. Taken overall, this makes HENT a highly attractive investment for Ratos. We look forward to continuing to develop the company together with the experienced and dedicated management team."
Ratos is acquiring approximately 73% of HENT. The purchase price for 100% of the shares amounts to approximately NOK 725m. Based on estimated net cash at closing, enterprise value amounts to approximately NOK 450m. Ratos will provide equity of approximately NOK 310m.
The acquisition is subject to approval from the relevant authorities and is expected to be completed in the third quarter of 2013 at the latest.
For further information, please contact:
Susanna Campbell, CEO Ratos, +46 8 700 17 00
Emma Rheborg, Head of Corporate Communications and IR Ratos, +46 8 700 17 20