Destia to have a new owner
The State of Finland has today, 26 May 2014, signed an agreement with Ahlström Capital, according to which Ahlström Capital will acquire Destia Ltd’s entire share capital. The Finnish Government approved the arrangement negotiated with Ahlström Capital on 22 May 2014. According to the agreement, the purchase price of the shares is EUR 148 million and it includes a capital repayment of EUR 42 million to the State of Finland. The purchase price is based on Destia’s enterprise value of EUR 130 million. The ownership arrangement has no impact on personnel.
- Selling Destia to a private owner will clarify our role as one of the infrastructure service providers. We have strengthened our business operations consistently in recent years, and our strategic goal is to grow profitably within the infrastructure market," concludes Hannu Leinonen, CEO of Destia.
Ahlström Capital is a private equity investment company that provides its shareholders value by investing in industrial companies, public companies, real estates, environmental technology growth companies as well as forest holdings. The company is one of Finland’s largest private equity investment companies and its balance sheet is over EUR 700 million in 2014.
- Destia is a leading player in its field in Finland with sustainable growth opportunities in the infrastructure sector as an integrated service provider. The company has interesting growth opportunities, among others, in the maintenance of train tracks, rock and mine construction, as well as energy construction. Destia has developed considerably since its incorporation, creating a basis for us to continue to build on as an active owner with Destia management and employees," says Panu Routila, President & CEO of Ahlström Capital.
Selling Destia to Ahlström Capital will clarify the competitive position within the construction sector. The company will continue its operations as an independent, now privately owned competitor within the construction sector.
- For the State, the most important thing in ownership arrangements has been finding not only the right sale price but also a new domestic owner who is committed to developing the company responsibly and on long-term basis in Finland. The ownership arrangement has no impact on personnel, employment contracts or supplementary pensions. Under the leadership of the new owner, the company and its workforce can hopefully look forward to positive growth prospects. I believe this to be the right solution for both the company and its employees as well as the state, says Pekka Haavisto, Minister responsible for Ownership Steering.
The closing of the deal is subject to the approval by Finnish Competition and Consumer Authority.
Hannu Leinonen, CEO, Destia Ltd, tel. +358 20 444 4000
Panu Routila, President & CEO, Ahlström Capital Oy, tel. +358 40 503 6757
Minister Pekka Haavisto, Media Adviser Ville Hulkkonen, tel. +358 44 077 7226
Eero Heliövaara, Director General, Government Ownership Steering Department, tel. +358 295 160 150
Destia is a Finnish infrastructure and construction service company. We build, maintain and design traffic routes, industrial and traffic environments, as well as complete living environments. Our services cover the whole spectrum, from comprehensive overground operations to subterranean construction. In 2013, the revenue of the Destia Group was about €489.7 million. Destia employs about 1,500 people.
Ahlström Capital is one of Finland’s largest private equity investment companies. It creates added value for its owners by channeling its investments into industrial companies, listed companies and real estate. The Ahlström family is to centralize the management of its assets to Ahlström Capital, increasing Ahlström Capital’s balance sheet to over EUR 700 million. After the arrangement, Ahlström Capital’s portfolio includes significant holdings in the listed companies Ahlstrom Corporation, Munksjö Oyj, Outokumpu Oyj and Vacon Plc. In addition, the portfolio includes direct industrial investments, such as holdings in Enics AG and ÅR Packaging Group, as well as major real estate and forest holdings.