OSLO, NORWAY: NRC Norge Holding AS, a wholly owned subsidiary of NRC Group ASA, has entered into a share purchase agreement to sell 100% of the shares in its wholly owned subsidiaries NRC Gravco AS and Septik Tank Co AS to Norva24 AS, the Northern European market leader within underground infrastructure maintenance services (UIM).
NRC Gravco AS and Septik Tank Co AS 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.