NRC Group — M&A Activity 2023

Jan 12, 2023

NRC Group ASA enters into agreement to sell its subsidiaries NRC Gravco and Septik Tank Co to Norva24

NRC Group ASA enters into agreement to sell its subsidiaries NRC Gravco and Septik Tank Co to Norva24

NRC Norge Holding AS, a wholly owned subsidiary of NRC Group ASA ("NRC Group")

has today entered into a share purchase agreement (the "Agreement") to sell 100%

of the shares in its wholly owned subsidiaries NRC Gravco AS and Septik Tank Co

AS (collectively the "Companies") to Norva24 AS ("Norva24"), the Northern

European market leader within underground infrastructure maintenance services

(UIM).

The Companies have expected annual revenue of approximately NOK 90 million for

2022. The transaction is made in accordance with NRC Group's strategy to focus

on its core business, and the net proceeds will further improve the financial

and strategic flexibility and be used according to NRC Group's capital

allocation priorities. The net gain to be recognised is estimated to be

approximately NOK 45 million and will be reported as part of "other income and

expenses" at completion.

The transaction is subject to customary closing conditions. The transaction is

not expected to require any antitrust approvals, and the parties expect

completion of the transaction to occur during January 2023.

"The sale of the shares in the Companies enables us to focus on developing our

core business of rail construction, civil construction, rail maintenance and

environmental services. We have a leading position in the Nordics, and we will

continue to capitalise on our competitive advantages.  I would like to use this

opportunity to thank Arne Clausen, CEO of NRC Gravco, and his team for all their

efforts, and we wish them all the best for the future in Norva24. NRC Group

regards Norva24 with its key focus on UIM services as a very suitable owner of

Gravco, both for its employees and customers." said Henning Olsen, CEO of NRC

Group.

"We are very pleased to welcome Gravco to Norva24. Expanding our footprint in

Norway further is a key element on the Norva24 journey towards our vision of

becoming a European lighthouse in Underground Infrastructure Maintenance. Gravco

is a reputable company with highly skilled employees. Gravco will fit perfectly

into the existing setup of Norva24 companies and will improve our network

density in the Greater Oslo area, but will be kept as a separate entity, in line

with our decentralized local branch-based business model", says Henrik Damgaard,

CEO, Norva24 Group.

For further information, please contact Henning Olsen, CEO of NRC Group, + 47 91

74 15 92.

This information is considered to be inside information pursuant to the EU

Market Abuse Regulation and is subject to the disclosure requirements pursuant

to Section 5-12 of the Norwegian Securities Trading Act.

This stock exchange announcement was published by Siri McKellar Nilsen,

Administration, NRC Group ASA at 07.00 CET on 12 January 2023.