Oct 8 2010
BE Group (STO:BEGR), the Nordic region’s leading independent trading and service company in steel and other metals, is acquiring Lecor Stålteknik AB, a steel construction company employing 26 people at its plant in Kungälv, Sweden. The acquisition is in line with BE Group’s strategy to strengthen and broaden its production service offering.
Lecor Stålteknik’s sales for the most recent year of operations, which ended in June, amounted to SEK 146M. Customers include the Swedish Transport Administration and several construction and port companies.
“The acquisition of Lecor Stålteknik is in line with our strategy to bolster our position as a reliable partner throughout the value chain with regard to steel and other metals,” says BE Group’s President and CEO Lars Bergström. “BE Group is a leader in sales, purchasing and logistics and we also have the ambition of becoming a leader in production service, helping our customers save time, costs and capital and thereby enabling them to focus on their core operations. Lecor Stålteknik’s know-how in design, production, project management and technology strengthens our market position and the acquisition will create new opportunities for competitive deliveries of advanced steel structures.”
Lecor Stålteknik’s vision is to develop as Sweden’s leading producer of prefabricated steel structures, well-known for its quality and capacity to deliver. For example, the company has experience of prestigious projects such as the new Holmenkollen ski-jump in Norway and the Gamla Ullevi soccer stadium in Sweden.
“I perceive Lecor Stålteknik’s joining BE Group as a secure and natural development of what we have built up,” says Tennce Carlsson, the company’s President. “We want the company to grow and together with BE Group we can, for example, realize our plans for a new production facility that better meets the requirements of major customers.”
The purchase consideration for the shares amounts to SEK 84M, of which SEK 28M will be paid when BE Group takes possession of Lecor Stålteknik AB. The acquisition is being financed within BE Group’s existing credit facilities. BE Group will assume responsibility for operations with immediate effect. The acquisition is expected to have a positive effect on the earnings of BE Group’s Business Area Sweden in the fourth quarter.