NCC Acquiring Rieber's 'Roads' Business Unit for About SEK 2 bn, Becoming Clear Leader in Asphalt and Crushed Products in Nordic Region.Business Editors STOCKHOLM, Sweden--(BUSINESS WIRE)--Sept. 1, 2000 NCC NCC See National Clearing Corporation (NCC). is acquiring Rieber & Son's 'Roads' business unit which has sales of slightly more than NOK NOK In currencies, this is the abbreviation for the Norwegian Krone. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 2.2 billion, with good profitability and strong market positions in a large part of the Nordic Region. With the acquisition, NCC is strengthening its leading role in Denmark and, with a single stroke, is also becoming a leading player in Norway and Finland. Together with NCC's already very strong position in Sweden, the transaction makes the company the clear leader in asphalt asphalt (ăs`fôlt, –fălt), brownish-black substance used commonly in road making, roofing, and waterproofing. Chemically, it is a natural mixture of hydrocarbons. and crushed-rock products in the Nordic Region. The acquired operations will be integrated in NCC's Business Area Industry, with resulting substantial synergy The enhanced result of two or more people, groups or organizations working together. In other words, one and one equals three! It comes from the Greek "synergia," which means joint work and cooperative action. gains. In addition, the acquisition is creating a critical mass that will enable strong expansion in the fast-growing markets in Poland and the Baltic States Baltic states, the countries of Estonia, Latvia, and Lithuania, bordering on the eastern coast of the Baltic Sea. Formed in 1918, they remained independent republics until their involuntary incorporation in 1940 into the USSR. They regained their independence in Sept. . The purchase price amounts to approximately SEK SEK In currencies, this is the abbreviation for the Swedish Krona. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 2 billion for a debt-free business and the transaction is subject to the usual due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. proceedings. "In contrast to the contracting business, asphalt and crushing crushing deaths of newborn animals, especially those in litters, caused by the mother lying on them accidentally. Contributed to by weakness of the neonate or awkward accommodation. A problem in piglets and puppies. Called also overlying. can be compared with industrial operations," Jan Sjoqvist, NCC's president, says. "The profitability is generally good and substantial synergies can be achieved by creating a solid structure in which strong market positions result in reducing costs directly and further improving profitability. As a result of the acquisition NCC is gaining strong positions in all domestic markets, amounting to a third of the asphalt market and one seventh of the crushed-rock products market in the Nordic countries. Thus, in a Nordic perspective, we are becoming twice as large as our closest competitor." The Norwegian company Rieber & Son's Roads business area, which has 2,300 employees, had sales of NOK 2.2 billion in 1999, with earnings of NOK 135 M. The largest sector is Asphalt, with sales of NOK 1.6 billion, including the following subsidiaries: Nodest in Norway, Phoenix in Denmark, and Interasfaltti in Finland. The Stone Division, with gravel, crushed-rock and natural stone, had sales of NOK 360 M and the Highway Safety unit, with road-marking and traffic signs, had sales of NOK 230 M. Also included is an expansive asphalt and crushed-rock products operation in Poland and the Baltic States. In Denmark, the merger of NCC Industri and Phoenix, will give NCC slightly more than 40 percent of the market. NCC Industri has no asphalt operations of its own in Norway but will acquire a 23 percent share of the market through its acquisition of Nodest. In Finland, NCC has a 50 percent holding in Valtatie, which together with Interasfaltti will have a market share of approximately 20 percent. "We are buying a profitable and successful business that is well managed and which, together with our present industrial operations, will create a very strong industrial structure in the Nordic Region," Jan Sjoqvist notes. "This will also improve our ability to compete in the contracting field at the same time that it makes it possible to expand the crusher crusher, machine used to reduce materials such as ore, coal, stone, and slag to particle sizes that are convenient for their intended uses. Crushers operate by slowly applying a large force to the material to be reduced. and concrete operations more rapidly -- in Norway and Finland in particular. Furthermore we will get a valuable contribution to our fast-growing operation in Poland and the Baltic States." "The Roads business area has great opportunities to continue to develop." says Ulf B. Jespersen, chief executive officer of Rieber & Son. "As a result of the sale to NCC, the company is becoming part of an industrial structure that offers the best conditions for realizing these opportunities." When the full effects of synergies have been achieved, the acquisition is expected to yield a "durable" increase of approximately SEK 100 M in NCC's earnings. The return on additional capital employed Capital Employed 1. The total amount of capital used for the acquisition of profits. 2. The value of all the assets employed in a business. 3. Fixed assets plus working capital. 4. Total assets less current liabilities. is expected to exceed 12 percent. Following the due diligence proceedings, it is expected that the purchase agreement can be signed in mid-September, with NCC taking over the business on November 1, subject to approval by supervisory authorities. This and earlier press releases are available on the Internet: www.ncc.se. ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. : http://www.bit.se/bitonline/2000/09/01/20000901BIT00070/bit0001.doc http://www.bit.se/bitonline/2000/09/01/20000901BIT00070/bit0002.pdf |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion