Nordic Waterproofing has signed an agreement to acquire Veg Tech, a leading supplier of green roofs and multifunctional vegetation systems

Nordic Waterproofing Group (STO: NWG.ST) has today signed an agreement to acquire one of the leading players within vegetation technology in the Nordics – Veg Tech – with annual sales of approximately SEK 125 m employing around 45 persons. Nordic Waterproofing acquires initially 83 percent of the shares, and closing is expected to occur during the second quarter of 2018. Furthermore, Nordic Waterproofing has committed itself to, immediately following the closing of the main transaction, submit an offer to acquire the remaining shares for the same price per share as the main acquisition.

Veg Tech was founded in 1987 in Vislanda, Sweden, and has for 30 years helped their customers to create greener and more natural surroundings. The company grows, develops and supplies buildings and cities with multifunctional vegetation systems that contribute to naturally delay the infiltration of rain water, improve water quality and favors and improves biodiversity. The company offers green solutions that create vibrant and sustainable cities for roofs, courtyards & roof gardens, water and soil environments, green facades, etc., and is today a leading supplier to construction companies, property owners and the public sector. Customers throughout the Nordics are provided with a wide range of high-quality plant products such as green roofs and facades, green courtyards and purification of water. The company’s production of plants are conducted at four sites in Sweden; two in Vislanda, one in Ljungby, and one in Lagan. Sales offices are located in Stockholm, Gothenburg, Helsingborg, Copenhagen and Oslo.

“We are very pleased that we get the opportunity to carry through this acquisition. Veg Tech’s solid position in vegetation technology and green roofs is a perfect complement to our existing offering of high quality waterproofing solutions”, says Martin Ellis, President and CEO of Nordic Waterproofing. “Through the acquisition of Veg Tech, Nordic Waterproofing demonstrates and enhances its commitment towards sustainable and environmentally efficient solutions for the building industry”. 

“Veg Tech has for many years invested in production capacity and this is a natural step to increase the speed of the development of the company as a market leader within vegetation technology and sustainable construction”, says Bengt-Erik Karlberg, CEO of Veg Tech. “We are pleased to get a strong owner with a long-term focus and good understanding of our business, and we see great potential for synergies, primarily in marketing and market expansion but also in product development”, Bengt-Erik Karlberg continues.

Nordic Waterproofing Holding A/S’s Swedish subsidiary, Nordic Waterproofing Group AB, has signed an agreement to acquire 83 percent of the shares in Veg Tech AB for SEK 129 per share, corresponding to a consideration of SEK 153 m. The acquisition is conditioned upon due diligence, and sellers are the company’s founders, CEO and external investors. The acquisition will be financed by a new bank loan through an extension of Nordic Waterproofing’s current credit facilities. Furthermore, Nordic Waterproofing has committed itself to submit a bid to the minority shareholders to acquire the remaining shares for the same price per share, following the closing of the acquisition of the majority shares. Acquisition-related costs amount to approximately SEK 2 m in the form of consulting fees in connection with the acquisition process, and will affect the income statement during the second quarter of 2018. The acquisition is expected to have a positive effect on Nordic Waterproofing’s earnings per share in 2018.

This information is such that Nordic Waterproofing Holding A/S is obliged to make it public pursuant to the EU Market Abuse Regulation. The information submitted for publication, through the contact person set out below, on 19 April 2018, at 1.30 p.m. CET.

For further information, please contact:
Jonas
Olin, CFO and investor relations
Telephone: +46 708 29 14 54
E-mail: jonas.olin@nordicwaterproofing.com

Share

Welcome to Nordic Waterproofing Group

Nordic Waterproofing's strong brands protect homes, buildings and infrastructure.