DESTIA ACQUIRES MAJORITY INTEREST IN ITS-VAHVISTUS, SPECIALISING IN FOUNDATION, ENGINEERING AND ROCK CONSTRUCTION
Tue 22 Mar 2016 09:15:00 AM EET
Destia Group Plc
Stock Exchange Release
22.3.2016 at 9:15 (CET +1)
Destia acquires majority interest in ITS-Vahvistus, specialising in foundation, engineering and rock construction
Destia Ltd and ITS-Vahvistus Oy have today, 22 March 2016, signed a contract concerning a transaction according to which Destia acquires the majority interest in ITS-Vahvistus. The acting management of ITS-Vahvistus sells 51 per cent of the company to Destia. In the new ownership arrangement the acting management of ITS-Vahvistus will own minority interest, 49 per cent, of the company. The parties have agreed not to disclose the transaction value. The transaction is expected to be completed on 1 April 2016.
The revenue of ITS-Vahvistus was 7.6 million euros in 2015. The company employs 35 people. After the transaction has been completed the name of the company will change to Destia Engineering Ltd. The current CEO of the company Arto Niemeläinen will continue as the CEO also after the transaction has been completed.
”ITS-Vahvistus has strong expertise in foundation, engineering and rock construction, which reinforces Destia’s business portfolio and strengthens the implementation of the strategic growth objectives. With the professionals and the special fleet of ITS-Vahvistus, this transaction will enhance our ability to serve our customers in a more versatile way to create demanding infra solutions”, says Hannu Leinonen, President and CEO of Destia Group Plc.
”This transaction gives us strong reinforcement to implement our growth strategy objectives. Destia’s resource base, wide geographical coverage in Finland and experience of large projects with our expertise will constitute a multi-talent entity and a strong foundation for growth. As a result of the transaction, Destia will be versatile actor in infra construction market in the future”, tells Arto Niemeläinen, CEO of ITS-Vahvistus.
DESTIA GROUP PLC
Destia Group Plc, Hannu Leinonen, President & CEO, tel. +358 20 444 4000
ITS-Vahvistus Oy, Arto Niemeläinen, CEO, tel. +358 201 550 651
Nasdaq Helsinki Oy
Destia is a Finnish infrastructure and construction service company. We build, maintain and design traffic routes, railways, industrial and traffic environments as well as complete living environments. In 2015 the company’s revenue was over MEUR 460. With 1 500 dedicated experts we build the bigger picture, piece by piece. www.destia.fi/en
Operating in Finland and its nearby areas, ITS-Vahvistus specialises in subgrade reinforcement work and rock construction. ITS-Vahvistus carries out all special work for foundation engineering and subterranean construction. The company’s most typical products and work methods include pile-driving, grooving and tonguing, support-wall work, anchoring, concrete spraying, jet grouting and low-pressure grouting and subterranean excavation and reinforcement. Founded in 1993, ITS-Vahvistus currently employs some 35 people and has a turnover of about MEUR 7.6. The company has grown and diversified steadily and, in 2015, was one of the leading small- and medium-sized industrial enterprises in the sector.