Styrkás Expands Operations through Strategic Acquisition
Styrkás hf., a company in which SKEL holds a significant stake, has recently signed a pivotal agreement to acquire all shares of Hreinsitækni ehf. and HRT þjónustu ehf. This acquisition marks an exciting chapter for Styrkás as it seeks to broaden its service offerings and drive future growth.
Overview of Hreinsitækni
The Hreinsitækni group stands as a prominent provider of environmental and infrastructure services across various municipalities and businesses. Equipped with a robust fleet and facilities spread across four regions, Hreinsitækni employs around 150 dedicated personnel. With their revenue for 2024 projected to reach approximately ISK 5 billion, the company has demonstrated significant financial performance with earnings before interest and taxes (EBIT) estimated at ISK 800 million.
Transaction Highlights
The transaction holds a total enterprise value of about ISK 9.7 billion, with the share purchase price estimated at ISK 7 billion. Styrkás plans to facilitate this acquisition by utilizing a combination of funding: 25% will be settled in cash, while the remaining 75% will be covered through the issuance of new shares at a share price of ISK 24.5. Post-transaction, the shareholders of Hreinsitækni will acquire about 17.5% ownership in Styrkás, substantially increasing their stake within the company.
Strategic Implications for Styrkás
With this acquisition, Styrkás is set to establish a new business segment that will concentrate on environmental and industrial services. This strategic move not only strengthens the company's position but also enhances its service portfolio, specifically targeting heavy industries and municipalities. Furthermore, it opens avenues for additional revenue streams, particularly in infrastructure services
Financial Outlook for the Combined Entity
In the first nine months of the year, Styrkás reported an impressive revenue of ISK 47 billion, with an EBIT of ISK 1.9 billion and a profit after tax of ISK 1.3 billion. Following the acquisition, the total expected annual revenue is projected to soar to nearly ISK 70 billion, with anticipated profits surpassing ISK 2 billion. This strategic growth underscores the reinforcing impact of the transaction on the overall financial health of Styrkás.
Ownership Structure Post-Acquisition
Upon the successful completion of this merger, SKEL’s ownership in Styrkás will be adjusted to approximately 37.7%. The value of SKEL's investment, calculated based on the transaction's agreed share price, is expected to stand at ISK 11.2 billion. Moreover, there is a shareholders’ agreement among the major shareholders that outlines plans for Styrkás shares to be publicly listed on Nasdaq Iceland Main Market, anticipated in the near future.
Contact Information
For more insights and further details regarding this acquisition, individuals are encouraged to reach out to Ásgeir Helgi Reykfjörð Gylfason via email at fjarfestar@skel.is.
Frequently Asked Questions
What companies is Styrkás acquiring?
Styrkás is acquiring all shares of Hreinsitækni ehf. and HRT þjónustu ehf.
What is the transaction value for the acquisition?
The total enterprise value of the transaction is estimated to be about ISK 9.7 billion.
How will this acquisition affect Styrkás’ business segments?
This will create a new business segment focused on environmental and industrial services for Styrkás.
What is the expected influence on Styrkás’ revenue?
The combined company’s annual revenue is projected to reach nearly ISK 70 billion, significantly increasing its market presence.
Who can provide more information about the acquisition?
Ásgeir Helgi Reykfjörð Gylfason can provide further insights via email at fjarfestar@skel.is.
