AF Gruppen

Earnings Release • Mar 25, 2022

AF completes acquisition of Stenseth & RS

AF completes acquisition of Stenseth & RS

With reference to the notice to the stock exchange of December 8, 2021 where AF Gruppen disclosed entry into a letter of intent with the owners of Stenseth & RS Holding AS.

Today AF Gruppen has entered into a final agreement to acquire 80 per cent of the shares of Stenseth & RS Holding AS (Stenseth & RS), and has simultaneously completed the acquisition of these shares. The remaining 20 per cent of the shares in Stenseth & RS will remain in the hands of company employees.

Stenseth & RS comprises the operating companies Stenseth & RS Entreprenør AS, which was established in 2002, in addition to Stenseth & RS Anlegg and Stenseth & RS Ressurs, which were established in 2017. The company is a well-run concrete contractor with a good track record and has a total of 300 employees. The company supplies a range of concrete works in the building and construction sector, including formwork, reinforcement, and casting of all types of concrete works. Additionally, the company is a market leader in the casting and surface treatment of floors.

The enterprise value for 100 per cent of Stenseth & RS Holding AS is valued at NOK 220 million on a debt-free basis. Settlement for 80 per cent of the shares will comprise shares in AF Gruppen ASA corresponding to NOK 40 million and cash. Part of the cash settlement will be provided as vendor financing until 2025. Guarantees have been agreed for the achievement of future performance targets.

The cash amounts paid as a part of the compensation are financed by AF Gruppen’s existing liquidity holdings.

“AF Gruppen continuously works to strengthen its own expertise, and we are very pleased to welcome Stenseth & RS on board. The company has performed well over time and has a culture and values that coincide with our own. The acquisition is consistent with our strategy of growing profitably, and will further strengthen our position in concrete works,” says Amund Tøftum, CEO of AF Gruppen.

For further details, please contact:

CEO, Amund Tøftum, tel. +47 920 26 712

EVP Civil Engineering, Geir Flåta, tel. +47 994 01 510

CFO, Sverre Hærem, tel. + 47 952 45 167