FORTUM CORPORATION STOCK EXCHANGE RELEASE 31 AUGUST 2016 12.30 EEST
Fortum has today finalised the acquisition of Ekokem Corporation with the four
biggest owners, representing approximately 81% of the shares. Ekokem is a
leading Nordic circular economy company specialised in material and waste
recycling, final disposal solutions, soil remediation and environmental
construction. Ekokem is headquartered in Riihimäki, Finland and generated sales
of EUR 258 million in 2015.
The debt and cash-free purchase price for 100% of the company will be
approximately EUR 700 million. Based on Fortum’s estimate for 2016, the
purchase price corresponds to approximately 11 times EBITDA.
Ekokem will be integrated as a business area into the City Solutions division
and is consolidated into Fortum Group from the end of August 2016. Transaction
costs (including transfer tax) of approximately EUR 12 million will be included
in the result for the third quarter of 2016.
As of today, minority shareholders in Ekokem representing approximately 12% of
the shares have approved the tender offer. Consequently, as Fortum’s total
shareholding will exceed the 90% threshold Fortum will initiate a minority
redemption process for the remaining shares directly after the end of the
tender offer period (30 September 2016). Shareholders accepting the tender
offer during the tender offer period will receive payments mostly in September
2016, whereas payments to the shareholders in the redemption process are
estimated to take place in the spring of 2017.
Fortum announced the acquisition on 27 May 2016.
Vice President, Investor Relations and Financial Communications
Investors, analysts and financial media:
Sophie Jolly, Vice President, Investor Relations and Financial Communications,
tel. +358 10 45 32552
Mari Kalmari, Vice President, Publicity and Communications, tel. +358 10 45
Ekokem is one of the leading circular economy companies in the Nordics that
provides environmental management and material efficiency services. Ekokem
operates leading facilities for hazardous waste treatment and offers a broad
spectrum of specialized environmental services. The company mission is to
create value by improving their customers material and energy efficiency.
Ekokem offers recycling, reutilisation, and final disposal solutions, as well
as soil remediation and environmental construction services. Ekokem has been
contributing to saving natural resources and promoting the circular economy for
already 35 years.
The group employs approximately 630 skilled professionals in Finland, Sweden
and Denmark. In January 2015, Ekokem acquired the Danish environmental
management company NORD.
The group’s key figures for 2015 were
-- Net sales EUR 258 million
-- Reported EBITDA EUR 55 million, EBITDA margin was 21.1%
-- Comparable EBITDA EUR 57 million
The biggest shareholders are the Finnish State (34.1%), the Association of
Finnish Local and Regional Authorities (21.4%), Ilmarinen Mutual Pension
Insurance Company (15.4%) and the Helsinki Region Environmental Services
Authority HSY (10.5%).
Sustainable city solutions a strategic priority for Fortum
Fortum's new strategy, published on 3 February 2016, targets growth and
continued profitability with a strong focus on clean energy, customers and
shareholder value creation. Fortum's vision is to be the forerunner in clean
energy. One of the strategic cornerstones towards the vision is creating
solutions for sustainable cities.
Growing cities and urban areas are facing multiple challenges, such as high
emissions from inefficient heating, cooling and electricity production,
increasing amounts of waste, and high traffic pollution and noise. Fortum aims
to use its expertise and experience to help cities solve these challenges
sustainably and to support building a circular economy. Fortum’s solutions
include efficient and reliable district heating and cooling, integrated
electricity retail solutions and related applications, waste-to-energy and
waste treatment, as well as enhancing e-mobility with smart charging solutions
for electric vehicles. In addition, the company sees new revenue opportunities
in various expert services in these areas.
In solutions for sustainable cities, Fortum targets growth primarily in its
current home markets and also the wider European market. Fortum will also
investigate possibilities in carefully selected urban areas in Asia.
"Ekokem is a first-class company with experienced management and personnel.
Supported by Fortum’s competence in waste-to-energy and strong financial
resources, a true Nordic circular economy champion will be formed. We see
excellent international growth opportunities for the business and intend to
invest in the further development of Ekokem’s solutions," says Pekka Lundmark,
Fortum's President and CEO (27 May 2016).
Fortum's vision is to be the forerunner in clean energy. We provide our
customers with electricity, heat and cooling as well as other energy solutions
that improve present and future life. Already 64% of our electricity generation
is CO2 free. Our main markets are the Nordic and the Baltic countries, Russia,
Poland and India. In 2015, we employed some 8,000 energy sector professionals,
and our sales were EUR 3.5 billion. Fortum's share is listed on Nasdaq