ETTEPLAN OYJ, STOCK EXCHANGE RELEASE, AUGUST 31, 2015, AT 09.30 A.M.
ETTEPLAN STRENGHTENS ITS POSITION IN PLANT ENGINEERING BY ACQUIRING SAV OY – FINANCIAL GUIDANCE CHANGED
Etteplan strengthens its position in plant engineering by acquiring Suunnittelu ja Asennusten Valvonta – SAV Oy and its subsidiaries with contracts signed on August 31, 2015. The transaction value is approximately EUR 7 million and the purchase price is paid to the sellers with directed share issue and cash.
SAV Oy, founded in 1993, offers plant engineering and project services to industry. SAV Oy and its subsidiaries employ approximately 190 persons and the Group has offices in eight different locations in Finland. SAV Group’s revenue in 2014 was approximately EUR 12.5 million. Synergy benefits achieved with this acquisition are estimated to be approximately EUR 0.3 million per annum and to materialize from year 2016.
In addition to SAV Oy’s business Etteplan acquires 100% share of ownership and corresponding amount of voting rights in SAV Oy’s subsidiaries. The purchase price is partly paid in cash and partly with Etteplan shares. For the payment of purchase price paid in shares, Etteplan will arrange a directed share issue in which SAV Oy will subscribe 486,145 new Etteplan shares.
The business of SAV Oy and its subsidiaries are transferred to Etteplan on September 1, 2015. Personnel of SAV Oy and its subsidiaries continue in their tasks in the service of Etteplan Group.
SAV Oy’s services cover the entire range of engineering phases from pre-studies to the engineering and project management services required to implement the investment, as well as check and start-up of the plant. The company serves more than 120 customers. SAV Oy’s customers operate in several different industry domains.
Juha Näkki, President and CEO of Etteplan Oyj: “The acquisition follows Etteplan's acquisition strategy according to which we increase our competence to respond even better to our customers’ needs. With this acquisition Etteplan gains significant market position in the area of plant engineering in Finland and creates even better international growth possibilities for the Company. Increasing the share of high value-added services is included in our financial targets and plant engineering’s project business supports also achieving this target.”
Acquisition has a positive effect on Etteplan Group’s revenue and operating profit for the year 2015. In conjunction with the acquisition Etteplan Oyj updates its financial guidance given for year 2015.
Financial guidance
We expect the revenue and operating profit for the year 2015 to grow clearly compared to 2014.
Previous financial guidance
We expect the revenue and operating profit for the year 2015 to grow compared to 2014.
Vantaa, August 31, 2015
Etteplan Oyj
Board of Directors
Additional information:
Juha Näkki, President and CEO, tel. +358 400 606 372
Outi-Maria Liedes, SVP, HR & Communications, tel. +358 40 756 9620
DISTRIBUTION:
NASDAQ OMX Helsinki
Major media
www.etteplan.com
Etteplan provides engineering services and technical documentation solutions to the world's leading companies in the manufacturing industry. Our services are geared to improve the competitiveness of our customers' products and engineering processes throughout the product life cycle. The results of Etteplan's innovative engineering can be seen in numerous industrial solutions and everyday products.
In 2014, Etteplan had a turnover of EUR 131.9 million. The company has 1,900 professionals in Finland, Sweden, the Netherlands and China. Etteplan's shares are listed on NASDAQ OMX Helsinki Ltd under the ticker ETT1V.