AF Gruppen — M&A Activity 2015

Apr 16, 2015

AF Gruppen signs Letter of Intent with Målselv Maskin & Transport AS

AF Gruppen signs Letter of Intent with Målselv Maskin & Transport AS

AF Gruppen (AFG) has entered into a Letter of Intent

with Målselv Maskin & Transport AS with intention to

buy 70 per cent of the company's shares.

Målselv Maskin & Transport AS is the largest machine

contractor in Troms County. The company is

headquartered at Rossvoll in Målselv municipality

and carries out assignments in the region. The

company had a turnover of NOK 225 million in 2014

and has approximately 50 employees.

The acquisition comprises Målselv Maskin & Transport

AS' stake in Holmen Betong AS and Anlegg og Maskin

AS as well as sites under development.

Enterprise Value (100 %) for Målselv Maskin &

Transport AS, inclusive ownership in subsidiaries

and sites, is estimated at around NOK 155 million.

The settlement is expected to consist of shares in

AF Gruppen ASA and cash.

The transaction is conditioned by a due diligence

and the board's approval. The transaction is

expected to be completed in Q2 2015.

"We have had our eye on Målselv Maskin & Transport

AS for some time, and are impressed by the company's

performance. We are familiar with them through

previous cooperation as a company that shares AF

Gruppen's values. This agreement is in line with our

strategy for profitable growth in one of our core

markets. This cooperation provides increased

opportunities in a region that has several major

construction projects ahead," says Pål Egil Rønn,

CEO of AF Gruppen.

For further information:

CEO, Pål Egil Rønn, tel. +47 90 95 77 13

EVP/CFO, Sverre Hærem, tel. +47 95 24 51 67