Based on an enterprise valuation of the Hjellnes group of NOK 170 million, adjusting for net debt and net working capital, the total purchase price is NOK 184 million. The valuation is based on a normalised 2016 financial result. The settlement will be a combination of NOK 119 million in cash and NOK 65 million in Multiconsult shares. The closing date is planned by September 2017.
As part of the settlement, Multiconsult will issue 721 194 shares, which will be transferred to Hjellnes Holding AS. Hjellnes Holding AS will further transfer the shares to its shareholders, or companies owned by each of its shareholders, through a demerger.
The amount of shares to be transferred as part of settlement is based on a weighted average trading price of the Multiconsult shares on Oslo Børs in the two-week period preceding the signing of the share purchase agreement.
“We have been following Hjellnes Consult and Johs Holt closely for many years and are impressed by what the company, its management and employees have achieved. A combination of Hjellnes Consult, Johs Holt and Multiconsult will be strategically correct and provide great opportunities for both organisations, “says Christian Nørgaard Madsen, CEO of Multiconsult.”
“After 70 years since the start of Hjellnes Consult, time has come to position ourselves for further growth and development in a market that is constantly changing both competition- and market-wise. We will achieve this by becoming part of Multiconsult. Together with Multiconsult, we will be even better equipped to ensure continued growth, safeguarding our core values while maintaining a high professional level for both customers and employees”, says CEO Geir Knudsen and Gunnar Egset in Hjellnes Consult and Johs Holt, respectively.
A power center in eastern Norway
In the Oslo area, Multiconsult and the Hjellnes group are almost even in size, with complementary organisations. The companies’ business areas are mostly complementary in expertise and capacity. By utilising a common customer base, a central power center with a strong market position in Eastern Norway will be formed.
Multiconsult and Hjellnes group have been operating in the same industry for a long time and all parties are confident that the companies fit well together, both strategically, professionally and culturally. Combining the forces increases the interdisciplinary capacity and expertise within the core business areas Buildings & Properties, Transportation, as well as Water & Environment. Multiconsult aspires to exploit this to take new market shares and increase the competitiveness of the company’s strategic investments in urbanism and healthcare, in line with the company’s 3-2-1 GO strategic objectives by 2020.
Johs Holt’s professional environment and reputation as specialists in bridge designs are recognised as very strong. Together with the resources of Multiconsult a solid position within the transportation market will be fortified and be the starting point for further growth.
The acquisition is subject to approval from the Norwegian Competition Authority.
For further information, please contact:
Mirza Koristovic, Head of Investor Relations
Phone: +47 93 87 05 25
Gaute Christensen, VP Communications
Phone: +47 911 70 188