Stock exchange release

Fortum to acquire Ekokem, a Nordic circular economy company

27 May 2016, 13:35 EEST


Fortum has signed an agreement with the four biggest owners of Ekokem Corporation, representing approximately 81% of the shares, to acquire their shareholding in the company for approximately EUR 470 million. This would correspond to debt and cash-free purchase price for 100% of the company of approximately EUR 700 million. Based on Fortum’s estimate for 2016, the purchase price would correspond to approximately 11 times EBITDA. The acquisition will generate a positive operative result and cash flow for Fortum from the beginning. The acquisition will diversify Fortum’s earnings structure as Ekokem generates most of its result from other sources than the Nordic power price.

The four biggest shareholders of Ekokem are the Finnish State, the Association of Finnish Local and Regional Authorities, Ilmarinen Mutual Pension Insurance Company and the Helsinki Region Environmental Services Authority, HSY. The transaction will require competition authority clearances in Finland and in Sweden. Fortum estimates that it will conclude the transactions during the third quarter of 2016. Fortum will also make a tender offer to all remaining shareholders at the same price (EUR 165 per share). The completion of the offer will be subject to Fortum obtaining the competition clearances and reaching majority ownership in Ekokem. Having reached the necessary ownership thresholds, Fortum will proceed with a minority redemption process.

In 2015, Ekokem’s net sales totalled EUR 258 million and reported EBITDA EUR 55 million. Ekokem has approximately 630 employees.

Ekokem is a leading Nordic circular economy company specialised in material and waste recycling, final disposal solutions, soil remediation and environmental construction. The company has a strong position especially in the treatment of hazardous waste. Ekokem serves both industrial and municipal customers from its facilities in Finland, Sweden and Denmark. The main revenue sources comprise of waste and environmental services, as well as revenues from the sales of power, recycled materials and heat.

"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.

“The board of Ekokem initiated a review of the capital structure at the beginning of the year, with the target to secure sufficient resources to enable the fulfilment of the company’s strategy and continued growth. I believe this goal will be fulfilled as a part of Fortum, and that it secures the continued success of Ekokem. With Fortum’s network and resources, we will be able to expand Ekokem’s services more broadly internationally in the future. I believe Fortum’s circular economy strategy will be developed based on the Ekokem platform,” says Karri Kaitue, Ekokem’s CEO.

Fortum Corporation
Sophie Jolly
Vice President, Investor Relations and Financial Communications

News conference in Finnish

A press conference (in Finnish) will be held today, 27 May 2016 at 16.00 EEST at the Scandic Simonkenttä hotel, Simonkatu 9, Helsinki, Finland. The press conference will be webcasted on Fortum’s Finnish website ( and media can also ask questions using the webcast’s chat function.

Further information:
Pekka Lundmark, President and CEO, Fortum
Markus Rauramo, Executive Vice President, City Solutions, Fortum
Call-back requests: Pauliina Vuosio, Corporate Press Officer, tel. +358 50 453 2383
Investors, analysts and financial media: Sophie Jolly, Vice President, Investor Relations and Financial Communications, tel. +358 10 45 32552

Background information


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.


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 Helsinki.

Nasdaq Helsinki
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