EQVA ASA to acquire 100% of IMTAS Group shares

OSLO: EQVA ASA has announced an agreement to purchase 100% of shares in IMTAS AS and its subsidiaries, excluding IMTAS Eiendom AS.

The acquisition, conducted by EQVA’s wholly-owned subsidiary Eqva Industrial Solutions AS (EIS), aims to enhance EQVA’s service offerings and market position, increasing revenue by approximately 30%.

The transaction, valued at NOK 190 million in Enterprise Value (EV), is fully funded through acquisition finance, reinvestment from IMTAS management and shareholders in EQVA ASA, and a seller’s credit.

This acquisition marks EQVA’s largest transaction to date and aims to replicate EQVA’s success in Southern Norway in the Northern region, strengthening its position as a fully integrated service provider within piping, mechanical, power, and automation disciplines.

EQVA CEO Even Matre Ellingsen stated, “The acquisition of IMTAS Group aligns with our growth strategy, broadening our service offerings and enhancing access to markets in Northern Norway, including the process industry, aquaculture, renewable energy, and construction. We look forward to collaborating with our new colleagues in Mo i Rana and Harstad.”

IMTAS Group’s complementary services expand EQVA’s geographical operations, diversifying customer and revenue streams while strengthening the overall service offering. The business combination will yield substantial synergies across sales, sourcing, and operational expenses. EQVA’s operations, previously concentrated in Southern Norway, will now gain valuable expertise and a strong presence in Northern Norway, with more than 750 highly qualified employees.

IMTAS Group will continue to operate under its current brand and management, ensuring a seamless transition. IMTAS Group CEO Johannes Sandhei expressed excitement about joining EQVA, stating, “This merger allows us to strengthen our service offerings to existing and new customers.”

The acquisition is expected to add approximately NOK 376 million in 2024 revenue, for a combined EQVA financial year revenue of over NOK 1.5 billion. The combined EBITDA is projected to be in the range of NOK 120-130 million, with a pro forma EBITDA-margin of approximately 7.5%.

The acquisition values the IMTAS Group at an EV of NOK 190 million, excluding leasing liabilities and a conditional earn out of up to NOK 30 million. The transaction includes a combination of Consideration Shares, cash, and Seller’s Credit Consideration. EQVA has secured a NOK 200 million acquisition and refinancing offer from Nordea, along with an expanded NOK 70 million overdraft facility. The refinancing arrangement also allows for dividend distributions, given a leverage ratio of less than 1.5.

The acquisition is expected to be completed by the end of Q1 2025, subject to the adoption of the IMTAS Reorganization and approval from the Norwegian Competition Authority.

Headquartered in Mo i Rana, IMTAS Group provides industrial services focusing on the process industry, aquaculture, maritime/offshore, renewable energy, and construction. The group employs over 200 people and has shown strong financial development, with a CAGR on revenues of 19% from 2015 to 2024.