Breakthrough for Imtech in Scandinavia through acquisition of NVS

* Imtech now also one of the largest technical market players in Sweden and Norway
* Basic position obtained in Finland

Gouda, the Netherlands - Imtech (technical services provider in Europe) has acquired Swedish technical services provider NVS (NVS Installation AB). NVS is one of the largest players in the technical mechanical services market in Sweden and Norway, with a basic position in Finland. NVS expects to realise revenue of 350 million euro with more then 2,300 employees. The acquisition allows Imtech to implement its strategic plan for further growth targeted at annual revenues of 5 billion euro in 2012. It also establishes a basis for further growth in Scandinavia, both organically and through additional acquisitions. The purchase price of 235 million euro (excluding cash and cash equivalents) will be financed through a separate loan that Imtech has secured with a syndicate of banks. After the acquisition the Imtech balance sheet will be sufficiently strong to continue implementation of the strategic plan 2012. After the expected approval of the Norway Competition Authority, the acquisition will immediately contribute to earnings per share. The entire management team of NVS will stay on after the acquisition, thus guaranteeing continuity.

Imtech Chairman René van der Bruggen: ’The acquisition of NVS represents a real breakthrough for us. Last year we drew up a strategic plan for achieving annual revenues of 5 billion euro in 2012. One of the growth axes in the plan is to obtain a strong position in Scandinavia, a region where at present Imtech is only modestly active. NVS focuses on a wide range of fast-growing and diversified activities within the fields of energy, air conditioning and climate technology, with an excellent spread across service, maintenance, management, renovation and new technology implementations. In the fragmented Scandinavian market, this focus will enable further short-term growth by additional acquisitions in electrical engineering and long-term growth by additional acquisitions in ICT. In fact we are on the threshold of a similar and successful path which Imtech has followed in Germany by the acquisition of a strong mechanical engineering company, completed with electrical engineering and ICT activities, by which Imtech can now a multi-disciplinary service packages to its customers. Moreover, NVS is an excellently managed company with motivated management, a high margin, strong cash generation, an active acquisition policy and an outstanding track record when it comes to growth. Besides further growth in Scandinavia, NVS is for the longer term aiming at the Baltic states, a region where Imtech does not yet hold a position. We are truly delighted to welcome NVS to the Imtech family.’

Håkan Bergkvist, Chief Executive Officer of NVS comments on the acquisition: ’NVS and Imtech fit very well together and the acquisition by Imtech represents an immense opportunity for NVS. Our customers will immediately benefit from increased capabilities and depth of service offering through the combination. NVS will also be able to accelerate its growth strategy including further acquisitions in the region, geographic expansion and entry into adjacent disciplines such as electrical installation, control and steering systems as well as ICT. Above all, the acquisition by Imtech provides tremendous career opportunities for NVS employees.’

NVS is a truly excellent company with strong and committed management and employees”, comments Lars Österberg, partner at Triton. ’We have been fortunate to have had the opportunity to work together with NVS and are confident that the company will continue its strong development within Imtech.’

NVS Profile
Established in 1902, NVS is one of the largest and fast growing technical services providers in Sweden and Norway, with a basic position in Finland. With more than 2,300 employees working at 91 sites, NVS expects in the running financial year revenues of 350 million euro. The head office of NVS is located at Malmö in Sweden.

NVS has over 1,000 regular customers of varying sizes in different markets, including industry, government, buildings and infrastructure. The company maintains direct contacts with end-clients and has strong relationships with its customers. NVS generally concentrates on smaller projects with higher margins and gets involved in more complex larger projects only if the pricing is right. This approach promotes stability and continuity. More than 2,000 projects were carried out by NVS in 2007, with a balanced spread across service, maintenance, management, renovation and new technology implementations.
The company is broadly diversified. In HVAC (Heating Ventilation and Air Conditioning), NVS is a dominant player in Scandinavia, focusing on growth markets such as energy and water. In services and maintenance, accounting for 30% of total revenues, NVS is active in preventive and corrective servicing and maintenance. The company has 600 long-term service contracts, ranging from small to large (amongst others contracts with Statoil, ISS, Svedbergs and ABB). NVS is growing strongly in the field of industrial services, where it focuses on the hydraulic and pneumatic markets, and holds a solid position in the market of power stations. Furthermore, NVS is market leader in fire safety and one of the few certificated sprinkler companies in Sweden and Norway. In this market NVS operates across the full spectrum, with activities like planning, design, certification and installation all the way through to maintenance and inspection. Additionally, NVS is active in the market for advanced cooling for industrial complexes, the food industry, climatic chambers and computer rooms. The company is finally growing strongly in the energy optimisation field.

NVS, being a decentralised organised and highly diversified company, is the market’s best performer for technical services in Scandinavia. The company’s annual organic growth over the past three years has averaged close to 8%, an above-average margin for the market. NVS responds excellently to the growing need for outsourcing, energy optimisation, fire safety, an environment-friendly indoor climate, the growing demand for maintenance and large infrastructural projects.

Growth
Ample opportunities exist for Imtech’s further growth in Scandinavia. The highly fragmented Scandinavian market offers numerous opportunities for consolidation. The initial acquisition focus will be on electrical engineering, with the already strong position in energy and air conditioning and climate technology providing a stepping-stone for excellent cross selling. Imtech has already proven that this strategy works. Moreover, NVS has an outstanding track record in acquisitions and can easily grow through further acquisitions under the wings of the financially strong Imtech. The long-term objective is for all Imtech competences - mechanical engineering, electrical engineering and ICT - to be present in Scandinavia. Co-operation with various Imtech companies in Europe provides opportunities for additional growth.

Financing
The acquisition will be financed through a new and committed loan that Imtech has agreed with a syndicate of banks, consisting of Rabobank, Fortis, ING, KBC, NIBC and RBS. The conditions for the loan are based on the credit facility that Imtech agreed in July 2007 with a syndicate of banks, worth 300 million euro. NVS has no interest-bearing net debt. After this acquisition, the Imtech balance sheet will be sufficiently strong to carry out the strategic plan 2012.

Imtech strategy
Imtech wants to expand its activities in Europe geographically. Besides current strong positions in the Benelux, Germany, UK, Ireland, Spain and Eastern Europe and in the international maritime market, Imtech is pursuing a strengthening of its position in Scandinavia, an ambition strongly boosted by the acquisition of NVS.