SKEL fjárfestingafélag hf.: Styrkás signs a purchase agreement to acquire Stólpi Gámar ehf. and affiliated companies

On 15 November 2023 it was announced that Styrkás hf., a company 69.64% owned by SKEL fjárfestingafélag hf., had signed an agreement setting out the main terms and conditions for the purchase of 100% of the shares in six subsidiaries of Máttarstólpi ehf. The agreement was subject to the parties finalizing a purchase agreement for the transaction, financing, the results of the due diligence and the approval of the Competition Authority.

Today, Styrkás signed a purchase agreement with Máttarstólpi to buy 100% shares in the following companies:

- Stólpi Gámar ehf., id. 460121-1590, Klettagörðum 5, 104 Reykjavík:
- Stólpi Smiðja ehf., id. 460121-1750, Klettagörðum 5, 104 Reykjavík;
- Klettskjól ehf., id. 460121-0510, Klettagörðum 5, 104 Reykjavík;
- Stólpi ehf., 460121-0430, Klettagörðum 5, 104 Reykjavík;
- Tjónaþjónustan ehf., id. 460121-1670, Klettagörðum 5, 104 Reykjavík;
- Alkul ehf., id. 491020-0830, Haukdælabraut 48, 113 Reykjavík.

collectively referred to as "the sold companies". These companies will continue to be operated on a consolidated basis.

The purchase agreement states that the enterprise value of the sold companies is ISK 3,549 million. After adjusting for net interest-bearing liabilities and net current assets, the final purchase price will be ISK 2,955 million. Upon delivery of the sold companies, 55% of the purchase price will be paid in cash, and the remaining 45% will be paid with new shares in Styrkás. As per the agreement, Máttarstólpi, which is owned by Ásgeir Þorláksson, will acquire an 8.7% stake in Styrkás. The exchange rate of Styrkás' shares in the transaction is ISK 1.1945, which is 17.7% higher than the book price of the shares in the half-year report of SKEL in 2023.

The acquired companies had a combined profit of around ISK 663 million before depreciation, taxes, and capital items (EBITDA without the effects of IFRS 16) in 2023, according to the draft annual accounts. After the purchase, Styrkás Group's estimated profit before depreciation, taxes, and capital items (EBITDA) in 2024 is about ISK 2.7 billion.

Included in the acquisition is real estate at Sægarðar 15, 104 Reykjavík and plots at Gullhella 2 and Tinhella 2, 4, 6, 8, 10, and 12 in Hafnarfjörður. These plots are over 60,000 square meters. The approved regional planning shows that the utilization rate of the plots is 0.4. The total value of real estate and plots in the transaction is ISK 1,870 million.

Ásmundur Tryggvason, CEO of Styrkás:

“By acquiring Stólpi Gámar and its affiliated companies, Styrkás has taken an important step towards expanding its services and establishing a third core operation in the field of property management and rental activities. Stólpi Gámar is an industry leader in providing container and house unit solutions to businesses and individuals, container repairs, and insurance repair services. With an increasing demand for smart and cost-effective housing solutions where Stólpi Gámar is well-known for both quality and excellent services. Ásgeir Þorláksson's inclusion in the group of Styrkás shareholders is welcomed as he will work towards developing Styrkás further and prepare the company for listing on Icelandic stock market by the end of 2027.”

About Styrkás

Styrkás is 69.64% owned by SKEL fjárfestingafélag hf. and 29.54% by Horns IV slhf., a private equity fund managed by Landsbréf hf. Styrkás corporate strategy is to build on the strong foundations of the group with internal and external growth in the fields of energy and chemical products, industrial solutions, equipment management, waste and recycling services, heavy machinery and equipment management. Today, Styrkás consists of Skeljungur and Klettur, leading companies in their fields.

The objective of Styrkás shareholders is to list the company on the Icelandic stock market before the end of 2027.

Styrkás' advisors in the process are Íslandsbanki and BBA // Fjeldco and Máttarstólpa's advisors are &Pálsson and Landslög.

For further information, Ásmundur Tryggvason, CEO of Styrkás, asmundur@styrkas.is

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