New strong engineering consultant is formed by the merger of Retea and Energo

Bure has reached an agreement with Arcona to acquire the engineering consultant Energo. Energo AB with its subsidiary Energo Network Services AB is an engineering consultant with a strong position within electrical engineering and HVAC. Together with Bure-owned Retea a company is formed with about 190 employees and annual sales of approximately SEK 180 million.

Retea and Energo completes each other very well on a product level and will together provide an extensive offering of services within power distribution, communication systems, electricity and telecommunication engineering, lighting, HVAC and building automation systems.

”We are very pleased to be able to acquire Energo who has a very strong position as installation consultant. Retea and Energo will together create a good platform for further growth”, says Bure’s President and CEO Mikael Nachemson.

”We look very favorably on the placing of Energo into a constellation that creates a yet stronger player than Energo is today. It is Arcona’s intention to continuously use the combined Energo Retea as a strategic supplier for the further development of Arcona’s building concept Lean Construction”, says Håkan Birke, the chairman of Arcona.

The new company will be lead by Mikael Vatn, the present CEO of Retea. Östen Innala, the present CEO of Energo, will be executive chairman of the board.

Enterprise value for Energo is expected to be about 77 million, corresponding to a EBIT multiple of 7 to 8 times projected EBIT. The transaction is expected to close around year-end. Bure’s ownership in the combined company amounts to 96 per cent. Provided the approval of Bure’s annual shareholder meeting key employees in the new company will be offered to purchase shares on equal conditions.

Gothenburg, 14 December 2006

Bure Equity AB (publ)


wkr0001.pdf