Search

Skanska to acquire Gatu & Väg from Geveko

3/25/1997 12:00 AM CET
Press release

Skanska and Geveko have today reached and agreement whereby Skanska will acquire the Gatu & Väg highway and construction company from the Geveko Group. The takeover is subject to approval of the Swedish Competition Authority.

PRESS RELEASE, MARCH 25, 1997                          26/97

SKANSKA TO ACQUIRE GATU & VÄG FROM GEVEKO

Skanska and Geveko have today reached and agreement whereby Skanska will acquire the Gatu & Väg highway and construction company from the Geveko Group. The takeover is subject to approval of the Swedish Competition Authority.

"With the acquisition, Skanska is strengthening its position in the highway and construction sector, notably on the west coast of Sweden and in Dalecarlia Province," Jan-Gunnar Glave, Skanska’s business area manager, said with reference to the reason for the acquisition.

"Market conditions have weakened substantially in recent years; as a result, continuing structural rationalization in the industry is essential in order to achieve profitability," Geveko’s chief executive officer, Sigurd Walldal, said.

Skanska intends to gradually integrate the Gatu & Väg units with its own highway and construction operations which today have 8,000 employees, with sales of SEK 10 billion.

Gatu & Väg specializes in asphalt-laying. The company, which is active in western Sweden, Dalecarlia, Stockholm and central Norrland in northern Sweden, had sales of approximately SEK 430 M in 1996, with about 360 employees. Gatu & Väg includes the J&B Entreprenad contracting company in Svenljunga.

Geveko’s business comprises industrial operations and asset management. The Group expects to realize a capital gain of approximately SEK 50 M on the sale of Gatu & Väg. Geveko’s other subsidiaries are not affected by the divestment. Geveko plans to develop its remaining industrial operations. The company also plans to acquire additional companies with products and markets in areas related to Geveko’s. The parent company of the Group is listed on the "A" List of the Stockholm Stock Exchange.

Danderyd, March 25, 1997

SKANSKA AB

Group Public Affairs

Lennart Hallberg

For further information, kindly contact:
Senior Vice President Public Affairs Lennart Hallberg, Skanska AB, tel +46-8-753 88 00, or CEO Sigurd Walldal, Geveko, tel +46-31-17 29 45

This and previous press releases are also available on http://www.skanska.com