Eqva ASA

M&A Activity • May 14, 2024

EQVA and Kvinnherad Elektro sign business combination agreement

EQVA and Kvinnherad Elektro sign business combination agreement

14 May 2024: EQVA ASA (OSE: EQVA) (“EQVA”) and Kvinnherad Elektro AS, a full-service power and automation company, have today signed a business combination agreement. The agreement includes Kvinnherad Elektro’s 51 percent ownership in Vassnes Solutions AS, a group of leading engineering, welding, power and automation services companies.

This move, which both companies consider to be of high strategic value, will result in the establishment of a prominent and fully integrated system supplier within the piping, power and automation disciplines. The agreement strengthens EQVA’s position as a leading supplier for the upcoming significant upgrade and restructuring of Norwegian industry. After consolidation, EQVA will consist of more than 550 highly qualified employees, of which 270 will be engaged within the business segment power and automation.

For 2023, EQVA reported a turnover of NOK 670 million. The merger will result in an increased turnover for EQVA of between NOK 160-175 million on an annual basis. The company will provide updated forecasts in relation to the 1st quarter presentation on 16 May.

EQVA will acquire all shares of Kvinnherad Elektro AS in exchange for shares in a wholly owned subsidiary, along with a cash component. The subsidiary of EQVA will be listed on the Oslo stock exchange in the next 12-18 months.

The business combination will significantly increase EQVA’s capabilities and expertise in attractive power and automation markets. It will also increase the company’s flexibility to undertake major contracts in engineering, green transition and electrical services.

“With this move, EQVA continues to deliver on its strategy for growth and broadening of its service offering. This combination enhances EQVA’s access to attractive markets in Western Norway such as the smelting industry, maritime industry, and offshore industry. We look forward to working with our new colleagues in both Ølen and Rosendal and will strive to further enhance our service offering for our valued customers,” said Even Matre Ellingsen, CEO of EQVA.

The business combination agreement is set to be completed during Q2 2024, with the transaction becoming effective from ultimo Q2 2024.

“In addition to opening new market segments for EQVA, we will be able to leverage synergies between the companies involved. Kvinnherad Elektro and Vassnes Group have approximately 200 skilled professionals in total. In our subsidiary BKS we have 73 employees working in the power and automation segment. Together we will have a pool of approximately 270 skilled and experienced employees in the power and automation segment,” Mr. Ellingsen added.

Following the transaction, both Kvinnherad Elektro and Vassnes Solutions will continue to operate under their current brand and management, ensuring a seamless continuation of their operations.

«We are excited to become part of EQVA. We have a history of close collaboration with EQVA’s subsidiary, BKS, and we operate in the same region and markets. This merger gives us an opportunity to increase our market share and strengthen the competence and quality of our services to both existing and new customers. We also see potential to undertake larger multidisciplinary projects in the future," said Kjetil Helvik, general manager of Kvinnherad Elektro.

About EQVA:

EQVA ASA is a knowledge-based active owner of engineering, construction and service companies that contribute to the green transition in maritime, power intensive and renewable industries. The company is a fully integrated service and maintenance supplier for the Norwegian land-based and maritime industry.

The group has a well-diversified product and market portfolio, and further growth will be established through a combination of company-based development and utilization of synergies between the companies in the group.

Key companies in the group are BKS and Fossberg Kraft, each building on decades of experience and widely recognized by clients in a broad range of industries.

About Kvinnherad Elektro:

Kvinnherad Elektro, with its over 80 years of experience, is a full-service supplier for power and automation installations. The company serves customers in the smelting industry, fish farming, shipyards, transport construction projects, and households. With a team of 42 employees, including skilled engineers and installation experts, Kvinnherad Elektro is recognized as a trusted partner in the power and automation industry.

About Vassnes Solutions:

Vassnes Solutions is a leading group of engineering, welding, and power and automation service companies. Vassnes Solutions and its three subsidiaries Vassnes Mechanical AS, Vassnes Power AS and Vassnes Engineering AS deliver high-quality services to various sectors within the land-based and maritime industry. The group consists of a total of 160 employees with electrical engineering, installation, and welding expertise.

For more information, please contact:

Even Matre Ellingsen, Chief Executive Officer. Phone: + 47 990 05 500

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