NRC Group — M&A Activity 2016

Nov 7, 2016

NRC Group acquires Gravco

NRC Group acquires Gravco

NRC Group ASA ("NRC Group" or the "Company") has today

entered into an agreement for the acquisition of

Gravco AS and Septik Tank Co AS (together "Gravco")

from Imseth Holding AS.

Gravco is a leading water and wastewater entrepreneur

in the Oslo area. The acquisition of Gravco will

strengthen the Company's position for projects related

to the tram and metro systems in Oslo. The Oslo tram

system will undergo a major upgrade triggering a

number of contracts with start-up from 2017 in order

to prepare for delivery of new tram wagons in 2021.

The city of Oslo will in parallel with the tramline

upgrades, renew water and wastewater lines.

"We are very excited about joining forces with the

Gravco-team, and believe our end-to-end setup can make

a big difference when it comes to renewing the tram-

system in Oslo", says CEO Øivind Horpestad in NRC

Group.

NRC Group will acquire 100% of the shares in Gravco

for an enterprise value of NOK 75.0 million. The

acquisition will be financed by payment of NOK 30.0

million in cash upon closing, by issuance of NOK 30

million in 441,988 new shares in the Company and NOK

15.0 million as a seller's credit. The seller of

Gravco has guaranteed a minimum EBITDA in each of 2016

and 2017 of NOK 15.0 million. The transaction is

expected to be completed by end of November.

For more information about Gravco and the acquisition,

please refer to the attached extended stock exchange

release.

NRC Group will further elaborate on the acquisition of

Gravco and present its Q3 2016 report tomorrow, 8

November 2016, and invites investors, analysts and

media to attend a presentation at Arctic Securities at

11:00 CET.

This information is subject of the disclosure

requirements pursuant to section 5-12 of the Norwegian

Securities Trading Act.