Nordisk Bergteknik has entered into a letter of intent regarding the acquisition of all shares in the Finnish underground mining contractor Power Mining Oy, including the Swedish subsidiary Power Mining Sverige AB. Power Mining has sales of approximately SEK160 million on annual basis, with an EBIT margin that was very strong during the last financial year and amounted to approximately 20%.
Through the acquisition, Nordisk Bergteknik establishes itself in Finland, and at the same time strengthens and supplements its offer in Sweden, particularly regarding the mining industry. The ambition is for the deal to be finalised and for the acquisition to be completed during the first quarter of 2023. Power Mining operates in both Finland and Sweden and is a complete supplier in underground and tunnel work and currently has around 45 employees. The company’s clients are mainly found in the infrastructure sector and in the mining industry.
“By acquiring Power Mining, we establish in Finland, which is a market similar to the Swedish one and a natural step in our geographical expansion and in line with our growth strategy. Power Mining is a well-established company with specialist competence in its field. The company also has high profitability and very low indebtedness, which contributes to strengthening the group’s cash flow and financial position over time. By acquiring Power Mining, we are taking a step into the Finnish market, and we are also creating good conditions for further growth in Finland,” says Andreas Christoffersson, CEO Nordisk Bergteknik.
The agreed preliminary purchase price amounts to €12.2 million (corresponding to approximately SEK135 million) with a possible additional purchase price of a maximum of €4 million (corresponding to approximately SEK44 million) which may be added depending on Power Mining’s financial development over the next three years.
The acquisition will be financed through own cash, existing credit facility and a seller promissory note, while parts of the purchase price will be reinvested in Nordisk Bergteknik in the form of shares, whereby the current owners become long-term owners in Nordisk Bergteknik. Power Mining is estimated to contribute approximately SEK0.50 on earnings per share on annual basis based on the expected number of outstanding shares after the acquisition. The parties’ ambition is for the deal to be finalised and to complete the acquisition during the first quarter of 2023.
Nordisk Bergteknik describes itself as a strategic partner in selected niches in the market for construction and contracting services in infrastructure and the mining industry. The group, which today is northern Europe’s largest overall wholesaler in rock handling and foundation solutions, has 24 operational companies with strong positions and brands in the regional market in Sweden and Norway.
