Ahlsell has signed an agreement to acquire Swedish water & sewage business ViaCon from Saferoad for SEK90m ($10m).
The business unit has an annual sales of about SEK320m ($36m). As per the agreement, the sale will include the transfer of assets including inventories, equipment and immaterial property related to the water & sewage operations and the distribution of products including pipes, pumps, dwells, manholes, valves and fittings.
The deal will also include a distribution agreement of ViaCon’s geotechnical products that are used in small and medium-sized construction projects in Sweden and Norway.
ViaCon began its operations in 2004 and could establish itself as one of the strong companies in the sector through various acquisitions.
The company has several major customers in construction and infrastructure. Presently, the company has 81 employees at 11 locations in the country.
Ahlsell is poised to continue the business under the ViaCon brand while purchasing, logistics and administration will be gradually integrated after the acquisition is completed.
Ahlsell's consideration for the acquisition will depend on the final working capital adjustment at the closing.
The deal is subject to approval by the Swedish Competition Authority and closing is planned for September 2017.
Ahlsell Group president and CEO Johan Nilsson said: "The acquisition adds valuable expertise and strengthens our initiatives directed to attractive customer segments within construction and infrastructure.
“I find an attractive potential in the distribution agreement regarding their advanced geotechnical products, where Ahlsell can strengthen their current distribution capacity in a positive way."
Saferoad Group CEO Morten Holum said: "We are looking forward to the cooperation with Ahlsell and their contribution to our distribution network for geotechnical products where we continue to provide added value through our technical expertise.”
Image: Ahlsell to acquire Saferoad’s water & sewage business. Photo: Courtesy of Ahlsell AB.