Through the acquisition Peab will expand its presence in Sweden, Norway and Finland and become established in the paving business in Denmark.
The deal, says Peab, gives "a unique and market leading position in this business in the Nordic region. The deal will also increase the importance of industrial operations for the Group.
"Greater geographic proliferation in areas that are normally less sensitive to the business cycle (will also) increase stability in the Group. It also provides a platform for further expansion and development in other operations such as Recycling and Concrete.
According to Jesper Göransson, president and CEO of Peab:“The acquisition is a significant step in our ambition to strengthen our local presence and develop our work in what we call locally produced community building.”
Peab desribes itself as a leading player in the asphalt manufacturing, paving and mineral aggregates industries in Sweden and Norway.
The new deal "entails taking over some 1,700 employees, around 200 strategically placed quarries along with 63 production asphalt plants in the Nordic region," says the group.
The acquired business had net sales of around SEK 6,005 million with an adjusted EBITDA of around SEK 240 million in 2018.
The transaction is a combination of an asset acquisition and a share purchase. The acquisition payment is expected to amount to around three billion Swedish kronor for a debt-free business and is fully financed.
