Lassila & Tikanoja plc
Stock exchange release
20 June 2017 8 am

Lassila & Tikanoja plc has signed an agreement to acquire Veolia’s facility management business in Sweden through the acquisition of 100 percent of the shares of Veolia FM AB from Veolia Nordic AB, the wholly owned subsidiary of Veolia Environnement S.A. Through the acquisition Lassila & Tikanoja aims to strengthen its presence in the Swedish facility services market by broadening its service offering in Sweden into Hard FM services (also known as maintenance of technical systems).

Veolia FM is one of the leading pure play Hard FM providers in Sweden. The company provides a wide range of Hard FM services, including operational, corrective and preventive maintenance of electrical systems, HVAC and building control systems as well as solutions for energy optimization. The core client segments are the hospital, municipal and commercial segments. In 2016, the company’s net sales were SEK 952 million (EUR 102 million, 2015: SEK 938 million) and operating profit (EBIT) was SEK 62 million (EUR 6.6 million, 2015: SEK 68 million). Veolia FM is headquartered in Stockholm and has approximately 580 employees.

“With the acquisition of Veolia FM we will significantly strengthen our position in the Hard FM market in Sweden, which is the fastest growing facility services market in the Nordics. The company and its employees have a high level of expertise, in maintenance of complex systems, such as in hospitals. We want to utilise Veolia FM’s proven concepts, especially in the hospital and municipal segments, in Finland to further help our customers maintain their buildings energy efficiently and in a sustainable way. Due to Veolia FM’s strong expertise in healthcare, we will also be able to offer technical maintenance solutions for the coming Finnish social and healthcare reform,” says Pekka Ojanpää, 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.

Lassila & Tikanoja will pay SEK 650 million (EUR 69.5 million) on a cash and debt free basis for 100 percent of the shares in Veolia FM. The transaction will be financed with cash reserves and credit facilities.

“It was the right timing for us to let Veolia FM pursue its development with a new industrial owner. This transaction will allow Veolia to focus even more strongly on delivering on our strategy to provide environmental solutions to industries in the Nordic countries”, says Håkon Vist, Business Development Director of Veolia Nordic.

The transaction is estimated to be completed during the third quarter of 2017 and is awaiting clearance by the competition authorities in Sweden.

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, Veolia FM will be reported as a part of the Facility Services segment.

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 8,000 persons. Net sales in 2016 amounted to EUR 661.8 million. L&T is listed on Nasdaq Helsinki.

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