NCC divests the asphalt business in Finland to Asfalttikallio
NCC divests its Finnish asphalt business to the Finnish based company Asfalttikallio. As previously announced, this is a small unit within NCC that has been loss-making for several years and has a better strategic fit with another owner. The transaction is expected to have a negative impact of SEK 180 M on the earnings in business area Industry in the fourth quarter 2021.
NCC announced the intention to exit the Finnish asphalt business in November 2020. The unit is small and lacks strategic fit with the rest of NCC in Finland. The business has been loss-making for several years.
During the rest of 2021 the unit is expected to continue to be significantly loss-making. In addition to the one-time earnings impact in the fourth quarter, operational losses will continue to impact earnings in the business area up until closing. The parties have agreed not to disclose the transaction amount.
“The divestment has been a part of our plan for enhanced profitability in the business area since last year. Asphalt Finland has a better strategic fit with its new owner that can provide the business and our employees with more opportunities”, says Ylva Lagesson, Head of NCC Industry.
The unit has a solid market share in Finland and works nationwide. The business has approximately 200 employees.
“The acquisition of NCC's asphalt business in Finland gives us an excellent opportunity to implement our previously made strategy with the help of equipment and professional people transferring from NCC to us”, says Antti Kalliomaa, CEO Asfalttikallio.
Asfalttikallio is acquiring the assets and take over staff and ongoing contracts relating to the asphalt business. The stone materials business is not part of the transaction. The transaction is not expected to require approval from the Finnish competition authorities. Closing is expected at year-end 2021.
NCC has a profitable and growing Construction and Property Development business in Finland and will continue to invest in the Finnish market.
For further information, please contact:
Tove Stål, Head of Group External Relations, +46 76 521 61 02
This is the type of information that NCC AB is obligated to disclose pursuant to the EU Market Abuse Regulation. The information was issued for publication through the agency of the contact persons set out above on October 4, 2021, at 08.00 a.m CEST.
About Asfalttikallio. Asfalttikallio is a Finnish company founded in 2012. Asfalttikallio have rapidly grown their business and has become a strong player in the Finnish asphalt market.
About NCC NCC is one of the leading construction companies in the Nordics. Based on its expertise in managing complex construction processes, NCC contributes to the positive impact of construction for its customers and society. Operations include commercial property development, building and infrastructure project contracting, and asphalt and stone materials production. In 2020, NCC had sales of SEK 54 bn and 14,500 employees. The NCC shares are listed on Nasdaq Stockholm.