Lassila & Tikanoja plc
Investor News
31 August 2017 12.00 pm
 
Lassila & Tikanoja plc has completed the acquisition of Veolia’s facility management business in Sweden through the acquisition of 100 per cent of the shares of Veolia FM AB from Veolia Nordic AB, the wholly owned subsidiary of Veolia Environnement S.A.
 
As a result, Lassila & Tikanoja will become one of the leading pure play Hard FM companies in Sweden, providing a wide range of services including operational, corrective and preventive maintenance of electrical systems, HVAC and building control systems as well as solutions for energy optimisation. The core client segments of Hard FM services are the hospital, municipal and commercial segments.
 
In 2016, the net sales of Veolia FM AB amounted to SEK 952 million (EUR 102 million, 2015: SEK 938 million) and its operating profit (EBIT) was SEK 62 million (EUR 6.6 million, 2015: SEK 68 million). Total equity and liabilities in the financial statements for 2016 amounted to approximately SEK 300 million (EUR 31 million), and the company has 580 employees.
 
“With the acquisition, we have significantly strengthened our position in the Hard FM market in Sweden, which is the fastest growing facility services market in the Nordics. Our employees in Sweden have a high level of expertise, in maintenance of complex systems, such as in hospitals. We want to introduce these proven concepts to Finland, especially to the hospital and municipal sector, to further help our customers maintain their buildings energy efficiently and in a sustainable way. We also believe that the strong expertise the company we acquired has of healthcare segment will help us provide better technical system solutions for the coming Finnish social and healthcare reform,” says Pekka Ojanpää, President and CEO of Lassila & Tikanoja.
 
“We are excited at becoming a part of Lassila & Tikanoja and look forward to developing the business further in Sweden,” says Erik Sundström, Managing Director of Veolia FM, who will start as the Business Director of L&T FM. 
 
Lassila & Tikanoja pays SEK 650 million (EUR 69.5 million) on a cash and debt free basis for 100 per cent of the shares in Veolia FM. The transaction is financed with cash reserves and credit facilities.
 
The pro forma net sales of Lassila & Tikanoja in 2016 would have been EUR 764 million, and its pro forma operating profit would have amounted to EUR 58 million, excluding the amortisation of intangible assets resulting from the acquisition, the annual volume of which will be specified at a later date. As a result of the acquisition, the Lassila & Tikanoja Group will offer maintenance of technical systems (Hard FM), cleaning and support services in Sweden, and the total net sales of the operations in Sweden amount to EUR 125 million.
 
The transaction is not estimated to have a significant effect on Lassila & Tikanoja’s 2017 result due to transaction and integration costs. In L&T Group financial reporting, the business operations in Sweden will be reported as a part of the Facility Services segment.
 
The company announced that it was preparing for the acquisition on 20 June 2017.
 
LASSILA & TIKANOJA PLC

 
Pekka Ojanpää
President and CEO
 
 
For additional information please contact
Pekka Ojanpää, President and CEO, tel. +358 10 636 2810
Timo Leinonen, CFO, tel. +358 400 793 073
 
Lassila & Tikanoja is a service company that is transforming the consumer society into an efficient recycling society. In co-operation with our customers we are reducing waste volumes, extending the useful lives of properties, recovering materials and decreasing the use of raw materials and energy. We help our customers to focus on their core business and to save the environment. Together, we create well-being and jobs. With operations in Finland, Sweden and Russia, L&T employs 8,500 persons. Net sales in 2016 amounted to EUR 661.8 million. L&T is listed on Nasdaq Helsinki.
 
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Nasdaq Helsinki
Major media
www.lassila-tikanoja.com