Nilfisk acquires Contractor, a leading service provider in the UK

Nasdaq Copenhagen
Nikolaj Plads 6
DK - 1007 Copenhagen K 

2 June 2015
Announcement No. 14

Nilfisk acquires Contractor, a leading service provider in the UK
Nilfisk has signed for and closed the acquisition of Floor Cleaning Machines Ltd., also known as Contractor®, a leading provider of repair and preventive maintenance in the UK. The parties have agreed not to disclose the price of the transaction. 

Contractor is located in Manchester and primarily serves contract cleaners and retail customers throughout the UK. The company is among the market leaders, a position which is obtained due to a unique business model and service concept. In 2014, Contractor realised a revenue of GBP 5.3m (approx. DKK 55m) of which more than GBP 4.5m (approx. DKK 47m) related to the service business. The company has approx. 40 employees and will in Nilfisk be operated as a separate entity under the daily leadership of its two founders. 

NKT’s Group Executive Director & CFO Michael Hedegaard Lyng commenting on the acquisition:
 - We are constantly looking for opportunities to grow our businesses in order to increase the value creation in NKT. The acquisition of Contractor is therefore fully in line with NKT’s growth ambitions for Nilfisk. 

Nilfisk CEO Jonas Persson commenting on the acquisition:
- Acquisitions are a central element in our recently launched growth strategy, with a clear view to play an active part in the consolidation of the cleaning equipment industry. Contractor complements and strengthens Nilfisk’s service business in the UK, which is one of our focus markets. We are pleased that under our ownership the current management team will continue to run the company ensuring Contractor’s reputation as a trusted partner to our customers by continuously seeking to improve the service level and operations. 

The acquisition does not impact NKT’s 2015 outlook of a consolidated organic growth of up to 3% and an improved operational EBITDA margin (std. metal prices) of up to 1%-point from 9.6% realised in 2014.