Veidekke acquires Gothenburg-based building contractor

Veidekke Sverige AB has signed a letter of intent to acquire SBS Entreprenad AB, one of the Gothenburg region's leading building contractors with 150 employees and a turnover of SEK 482 million in 2005.

Veidekke Sverige AB has signed a letter of intent to acquire SBS Entreprenad AB, one of the Gothenburg region's leading building contractors with 150 employees and a turnover of SEK 482 million in 2005.
Veidekke Sverige AB today signed a letter of intent to acquire SBS Entreprenad AB. The actual takeover, subject to the approval of the competition authorities, is estimated to take place in the middle of August. The competition authorities' decision is expected by the middle of July 2006.
 
"This acquisition is line with our plans for expansion in Sweden, and SBS complements Veidekke's current undertakings in Western Sweden in a very good way," says Per-Ingemar Persson, managing director of Veidekke Sverige AB. In the Gothenburg region, Veidekke, through Veidekke Construction AB (VECON), is a major player in infrastructure projects, while SBS represents a strengthening of Veidekke's construction enterprises, Persson adds.
 
"We are very happy that Veidekke will be the new owner. Veidekke and ourselves have many values in common. Together with Veidekke Construction AB (VECON) we may continue our development as a strong player in Western Sweden while at the same time benefiting from the larger company's resources," says Kent Kihlqvist, representative for the owners of SBS Entreprenad AB.
 
The final price, which, among other things, is dependent on SBS' results in 2006 and 2007, will amount to approximately SEK 100 million, of which 25% will be reinvested over time in Veidekke shares. The acquisition is expected to have a positive effect on Veidekke Sverige AB's results in the current year.