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Skanska to acquire majority share in Switzerland's largest construction company

12/22/1998 12:00 AM CET
Press release

Skanska today signed a letter of intent to acquire 70% of Karl Steiner Holding AG, Switzerland's largest company in construction services and project development. As a result, Skanska is making a strong entry into the Swiss market.

PRESS RELEASE, DECEMBER 22, 1998                        93/98

Skanska to acquire majority share in Switzerland's largest construction company

Skanska today signed a letter of intent to acquire 70% of Karl Steiner Holding AG, Switzerland's largest company in construction services and project development. As a result, Skanska is making a strong entry into the Swiss market.

Karl Steiner Holding had a total construction volume of SEK 6 billion in 1997. Steiner's strengths as the leading total services contractor lie in project development, real estate and facility management, engineering and in the planning and realisation of new buildings and reconstruction, including the important field of renovation in Switzerland. Steiner is also active in France through their 50% holding in Sogelym, a total services contractor active in Lyon and Paris. In parts of Europe, the Mid-East and Asia Pacific regions Steiner is active through their 50% holding in the project management company Turner Steiner International.

Peter Steiner will retain 30% of the shares and will serve as Chairman of the Board of Karl Steiner Holding AG. The Steiner family will retain full ownership of Karl Steiner Immobilien AG and 22% of Turner Corp. in the U.S. These parts of the Steiner Group are not included in the Skanska transaction.

"I am very pleased that Skanska and Steiner have joined forces. Steiner is a well-managed company, with major development potential and a good reputation. The large international customer base will contribute significantly to the continued growth of the Skanska Group. Steiner has more than 80 years of profitable growth in the Swiss market," says Claes Björk, President and CEO of Skanska. "I am also pleased that Peter Steiner is staying with the company and remains a part-owner."

"Steiner fits very well in to Skanska's European business," says Anders C. Karlsson, President of Skanska Europe, "Skanska and Steiner both have a customer-focused organization, and we are involved in the entire value chain, from concept to facility management. Skanska's financial resources and the international presence of both companies will create synergy effects for continued expansion."

The next step is to carry out due diligence. The transaction is also subject to approvals which may be required by governmental authorities.

The Swiss building market is approximately the same as that of Sweden, but the general building market is 50 % larger.

Skanska is one of the world's leading building services companies, with sales of SEK 60 billion and about 40,000 employees in more than 50 countries. The long-term strategy is focused on growth within construction-related services and project development.

 

Danderyd, December 22, 1998

SKANSKA AB
Corporate Communications

 


For further information, contact:
Anders C Karlsson, Manager of Skanska Europe, tel 040-14 40 00 or Cecilia Schön,
Senior Vice President, Corporate Communications Skanska AB, tel 08-753 88 00
Ferdinand Zoller, Karl Steiner Holding AG, tel +41 305 24 25