Veidekke

M&A Activity • Aug 15, 2024

Veidekke: Has completed the Euromining acquisition

Veidekke: Has completed the Euromining acquisition

Veidekke has completed the acquisition of Euromining in Gällivare, Sweden.

Euromining, a heavy-equipment contractor that mainly targets the mining

industry, will strengthen Veidekke's operations in northern Sweden, which

currently focuses on new construction of infrastructure and mining projects.

After a letter of intent announcing the acquisition was published 20 May 2024,

due diligence has been completed, and the parties have signed final agreements.

"The Euromining acquisition strengthens Veidekke's position in a region boasting

considerable activity and exciting prospects. Euromining has robust operations

and a good order book, and has had a strong financial development. When coupled

with Veidekke's existing operations, this constitutes a good basis for

parttaking in this region's expected growth in the upcoming years," says Jimmy

Bengtsson, CEO of Veidekke ASA.

Established in 1999, the Euromining group has 200 employees, an annual turnover

of approximately SEK 750 million and an operating profit of approximately SEK 90

million.

The company specialises in ore loading and transporting, with the majority of

its operations in the Malmfälten mining district, which includes Gällivare and

Kiruna. Euromining's largest customer is LKAB, which has extensive operations in

the northern Sweden mining industry.

"The mining industry, in which Veidekke already has a strong position, is the by

far largest and most important industry in northern Sweden. We have cooperated

with Euromining on several projects, and both operations and culture are a good

fit with Veidekke's plans in the region," says Marcus C Nilsson, EVP Veidekke

Infrastructure Sweden.

Veidekke is acquiring 100% of the shares through cash settlement. Euromining's

current owners will remain involved in the business. The agreed purchase price

corresponds to a company value of approximately SEK 500 million on a debt-free

basis. A significant part of of the amount is dependent on the results achieved

for the years 2024 to 2026. Veidekke is financing the cash payments with liquid

assets.

Completion of the acquisition requires approval from competition authorities and

other relevant authorities and will take place once approval has been granted,

which is expected to be in the third quarter 2024.

This information is subject to a disclosure duty pursuant to section 5-12 of the

Securities Trading Act.

For more information, contact:

· Jimmy Bengtsson, CEO Veidekke ASA +47?984 70?000

· Marcus C Nilsson, EVP Veidekke Infrastructure Sweden, +46 76 840 05 56

· Jørgen Wiese Porsmyr, CFO Veidekke ASA, +47?907 59 058

Veidekke press photos  (https://veidekke.fotoware.cloud/fotoweb/archives/5028

-Pressebilder-Veidekke/)

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Veidekke is one of Scandinavia's largest contractors. In addition to undertaking

all types of building and civil engineering assignments, the group also

maintains roads and produces asphalt and aggregates. Veidekke emphasises

stakeholder involvement and local experience. Its annual turnover is

approximately NOK 43 billion, and half of its 8,000 employees own shares in the

company. Veidekke is listed on the Oslo Stock Exchange, and has posted a profit

every year since its inception in 1936.