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Sweco to ride off with NRC Holding Design
Posted on Tuesday, 13 August 2019 13:30
Sweco has agreed to buy the Finland-based rail infrastructure engineering and consulting services business NRC Holding Design from Norway’s NRC Group for an enterprise value of EUR 42.50 million on a cash and debt free basis.
Through the acquisition, which is expected to complete on or around 1st November 2019, the acquiror will strengthen its position as a leading railway design expert in northern Europe.
A deal is in line with NRC Group’s strategy to focus on its core businesses and the firm will use the proceeds to repay a portion of its debt.
The transaction remains subject to closing conditions and approval by the Finnish Competition and Consumer Authority.
Picked up by the vendor through the acquisition of VR Track in 2019, NRC Holding Design is billed as a market leader in railway and light rail design and consultancy services in Finland.
It has 315 employees and a growing presence in Sweden.
For the quarter ended 31st March 2019, NRC Group posted revenue of NOK 1.23 billion (EUR 122.71 million), up from NOK 528.00 million in the corresponding period of 2018.
As a result of the deal, Sweco is expected to become one of the largest players within the infrastructure, mobility and urban planning segments.
Through the addition of NRC Holding’s 320 new railway design experts, the acquiror will also have more than 1,200 rail and light rail professionals on its books.
Markku Varis, president of Sweco Finland, said the purchase allows the company to provide a full-service range to its customers and increase railway transportation to help prevent climate change in and between urban areas.
The deal represents another acquisition for the buyer this year, having previously snapped up Linnunmaa, the MLM Group and imp for undisclosed sums in January, May and June, respectively.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 1,548 deals targeting heavy and civil engineering construction companies announced worldwide since the beginning of 2019.
In the largest of these, a consortium involving Engie and La Caisse de depot et placement du Quebec, through the acquisition vehicle Alianca Transportadora de Gas Participacoes, bought Brazil’s Transportadora Associada de Gas for BRL 33.50 billion (USD 8.45 billion).
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