Veidekke signs memo to acquire Euromining AB in Sweden for NOK 500 million
OSLO, NORWAY: Veidekke has entered into a memorandum of understanding relating to its acquisition of the company Euromining AB in Gällivare, Sweden, a machinery contractor focused on the mining industry.
Euromining’s business complements Veidekke’s existing operations in northern Sweden, which currently concentrate primarily on infrastructure and mining newbuild projects.
The acquisition encompasses not only Euromining AB, but also the two sub-contractors Lars Almgrunds Åkeri AB and Tommys Last Vitåfors AB. Euromining specialises in the loading and transportation of ore, and its operations are centred on the mining district of Malmfälten, encompassing Gällivare and Kiruna.
The company’s largest customer is LKAB, a major player in the northern Sweden mining industry.
“The acquisition of Euromining strengthens and complements Veidekke’s position in a region with high activity levels and exciting prospects. Euromining’s operations are robust, as is its order book, and the company has achieved strong financial growth. Combining these attributes with Veidekke’s existing operations will give the group a good foundation for participating in the growth forecast for the region in the years ahead,” says Veidekke Group CEO Jimmy Bengtsson.
Euromining was founded in 1999 and has approximately 200 employees across its various subsidiaries. Its annual turnover is around NOK 750 million, and its operating profit about NOK 90 million.
“Veidekke already has a strong portfolio of civil engineering projects linked to the mining sector – by far the largest and most important industry in northern Sweden. We have worked with Euromining on several projects, and both its operations and culture are a good fit with Veidekke’s future plans for the region,” says Veidekke Infrastructure Sweden Executive Vice President Marcus C Nilsson.
Veidekke is purchasing 100% of the shares in Euromining for cash, but the current owners will remain engaged in the business. The agreed purchase price equates to a enterprise value of approximately NOK 500 million on a debt-free basis, and includes a substantial element linked to performance over the next three years. The cash payment will be financed from Veidekke’s liquid reserves.
The acquisition will be implemented as soon as possible, with completion currently scheduled for Q3 2024. The purchase agreement is conditional on completion of satisfactory due diligence and approval of the transaction by the competition authorities and other relevant public bodies.
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