Civil engineering and construction company AF Group (OSE: AFG) has signed an LOI to acquire 70% of the shares of Målselv Maskin & Transport AS. The deal is conditional on due diligence and board approval. It values Målselv Maskin at 155 million NOK. The 105 million for the 70% stake would be paid in part in cash and in part in AFG shares.
Målselv Maskin is the largest machine contractor in Troms County with a long list of references particularly in local road infrastructure projects and foundation works. It was founded in 1967 and is based in Rossvoll where the company has a 1000 square metre workshop. It employs about 50 people and has pebble and gravel mines located in Målselv, Bardu and Sørreisa. Its available machinery includes excavators, loaders, dumpers, bulldozers, trucks etc.
Troms region has many large projects in the pipeline and AFG has been eyeing the firm for quite some time. Sales in 2014 were about 225 million NOK. This was up from 120 million in 2013, when the company had EBIT of 17.8 million. Equity at the end of 2013 stood at 141 million with an equity ratio above 80%. The stakes in Holmen Betong AS and Anlegg og Maskin as well as ongoing projects are a part of the deal.
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