AF Gruppen

M&A Activity • Sep 20, 2017

AF Gruppen strengthens its position in greater Oslo

AF Gruppen strengthens its position in greater Oslo

AF Gruppen and BundeGruppen are merging activities in BundeBygg and

AF Nybygg to create a strong building contractor in greater Oslo.

AF Gruppen has signed a letter of intent with BundeGruppen to take

over 51 per cent of the shares in BundeBygg. The takeover of shares

will be carried out by incorporating the AF Nybygg business unit

with employees and associated projects in BundeBygg. The transaction

does not involve any cash remuneration. The agreement gives AF

Gruppen an option to increase its stake in BundeBygg to 70 per cent

in three years.

Following this move, BundeBygg will have around 200 employees and

will be headed by Geir Flåta. Flåta has extensive experience from AF

Gruppen and currently heads AF Nybygg.

BundeBygg was established in 1992 and is a subsidiary of

BundeGruppen. The company is involved in contracting operations in

Oslo and the surrounding area, with primary focus on new

construction and the rehabilitation of residential and commercial

buildings. BundeBygg's turnover in 2016 was NOK 1.2 billion.

AF Gruppen currently enjoys a good position in building in greater

Oslo through units such as AF Bygg Oslo, AF Byggfornyelse, MTH,

Strøm Gundersen and Haga & Berg. The AF Nybygg business unit was

established as a new unit in January 2017 to offer customers a

greater range of services in a growing market.

"This move strengthens AF Gruppen's strategic effort in a growing

market in greater Oslo. With its long-term customer relationships

and numerous collaborative contracts, BundeBygg has a strong

position in the market. When teamed up with AF Nybygg, BundeBygg

will be a good supplement to AF Gruppen's strong position in greater

Oslo," says Morten Grongstad, CEO of AF Gruppen.

"With AF Gruppen on our team, BundeBygg has a strong backer. We can

combine the best from two good market players; management, systems

and structure from AF Gruppen, and good customer relationships,

collaboration contracts and projects from BundeBygg. We're convinced

this will create good value for customers, employees and owners,"

says Odd-Erik Bunde, CEO of BundeGruppen.

The transaction is subject to due diligence and approval by the

Norwegian Competition Authority. The transaction is expected to be

finalized in Q4 2017.

For further information:

CEO: Morten Grongstad, tel. +47 991 53 905

CFO: Sverre Hærem, tel. +952 45 167

EVP Building Greater Oslo and Sweden: Henning Olsen, tel. +47 917 41

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