AF closes HMB Holding AB acquisition

HMB is a successful construction company, established in 1994, with roots in Dalarna, Sweden. HMB is involved in both commercial and residential construction under all types of contracts in the market. HMB has operations in Stockholm/Mälardalen and Dalarna, Västmanland, Uppland and Gästrikland. All of the owners are active in the business. HMB will be a subsidiary of AF Gruppen Sverige AB, where AF Gruppen's Swedish operations are organised. Other Swedish AF companies include AF Bygg Göteborg, AF Bygg Syd, AF Projektutveckling, Kanonaden Entreprenad with subsidiaries, AF Härnösand Byggreturer and Pålplintar.

In 2017, HMB had a turnover of SEK 1,317 million and an EBIT margin of 7.7%. The company has 292 employees.

The acquisition is based on an agreed enterprise value (100 per cent) for HMB of SEK 600 million.

"We are very happy to have HMB on our team. The company has delivered good results over time and has a culture and core values that coincide with ours. This acquisition is in accordance with our strategy towards 2020, which implies profitable growth initiatives in Sweden," says Morten Grongstad, CEO of AF Gruppen.

The acquisition is accomplished through AF Gruppen Sverige AB, a subsidiary of AF Gruppen ASA (AFG). The sellers of the shares in HMB Holding AB are 13 employees in HMB through their respective investment companies. All the sellers will continue both as employees in HMB and as owners of HMB Holding AB. In addition to the above announced transaction, AF Gruppen Sverige AB has also acquired 3.4 per cent of the shares in HMB Construction AB, a 92 per cent owned subsidiary of HMB Holding AB. The sellers of the shares in HMB Construction AB are 69 employees in HMB Construction AB and they will all continue as owners and employees in HMB Construction AB after the transaction.

Reference is made to the stock exchange announcement dated 2 January 2019 and 15 October 2018, where AF Gruppen announced a signed letter of intent regarding HMB Holding AB.