NEAS ASA ("NEAS") has entered into an agreement to sell the business units Fire & Safety Engineering, Project- & Construction Management Services and Statutory Planning and Application Services, which are parts of the business area NEAS Consulting, to Sweco Norway AS ("Sweco ") for NOK 96 million (" the Transaction "). Subject to approval from the General Assembly in NEAS, a large portion of the sale proceeds is expected to be distributed to NEAS shareholders as dividends.
Lysaker, December 7, 2011
- The price is significant, but equally important is the fact that this sale focuses NEAS and its remaining business areas. NEAS will now focus on services to property owners and tenants, a market that is large and has significant potential. Furthermore, we regard Sweco as a good employer for the employees of the divested business units and the sale is a good industrial solution for both parties, says Thorbjørn Graarud, CEO of NEAS.
The divested business units sold consist primarily of consulting engineers within fire safety and project and construction management, as well as expertise within planning and building regulations. These business units have more than 70 consultants and the employees are transferred to Sweco as a result of the Transaction. The sale also includes transfer of other assets, rights and obligations associated with the business units.
- The business units Fire & Safety Engineering, Project- & Construction Management Services and Statutory Planning and Application Services are among Norway’s most respected within their areas, and will help strengthen Sweco's expertise, organization, and further growth in Norway, says Vibecke Hverven, CEO of Sweco.
NEAS will after completion of the Transaction consist of the following business areas:
- "Property management, Operation and Maintenance", which specializes in property management, maintenance and janitorial services
- "Facility Services", which specializes in catering, cleaning, reception and office support services, and
- "Tenants Services" which specializes in consulting for the signing of leases / brokerage services, planning of facilities and relocation.
- We have had good sales growth this year and will now further sharpen our concept. Companies increasingly seek to outsource functions that are not their core business. With our concept, references and expertise, we have the opportunity to realize our ambitions of significantly higher revenues and profitability, says Graarud.
NEAS reported strong revenue growth per Q3 2011 and the profitability has improved substantially. The remaining operations in NEAS had per Q3 2011 a total turnover of NOK 374 million compared to NOK 322 million in the same period of 2010. Profitability has improved significantly and EBITDA per Q3 2011 is the company's best ever. Per Q3 2011, EBITDA for the remaining business units was NOK 4 million, compared to NOK -6 million for the same period of 2010.
The Board of Directors of NEAS and Sweco have approved the transaction. Completion of the transaction is conditional upon fulfillment of customary conditions, including approval from the competition authorities in Norway. The transaction is expected to be closed with effect from 31 December 2011.