Lindab sells Business Area Building Systems to Groupe Briand
STOCKHOLM, September 23, 2021 / PRNewswire / – Lindab has signed an agreement for the divestiture of Business Area Building Systems, Lindab’s division for steel buildings sold under the Astron brand. The purchaser is the French construction company Groupe Briand. The acquisition is subject to antitrust approval in Russia. The non-recurring costs, due to the divestiture, are expected to amount to approximately 430 million Swedish kronor in the third quarter, with no impact on cash.
Astron was acquired in 2005 and operated as an independent unit within the Lindab Group. In 2020, Astron sales amounted to 946 million Swedish kronor, which corresponds to around 10% of Lindab’s total sales. The adjusted operating margin was 5.9%, compared to Lindab’s adjusted operating margin of 10.0% for the full year 2020. The business line employs 680 people.
The Briand Group has 70 years of experience in the construction industry with metal, wood and concrete constructions. Today they are mainly active in France and therefore see the acquisition of Astron as an opportunity to expand to other countries in Europe. Groupe Briand has a turnover of approximately 300 million euros and 1,200 employees.
“Astron has improved its profitability in recent years and has an attractive product portfolio and a competent management team. Lindab’s main focus is on ventilation systems and Astron’s steel buildings do not match Lindab’s strategy. We are convinced that Groupe Briand is a better choice. with its long experience in a similar type of business. “, states Ola Ringdahl, President and CEO of the Lindab Group. “Lindab will now invest fully in the growing business areas of ventilation systems and profile systems. “
“We are delighted to welcome Astron to the Briand Group. Astron is a well-known brand in the field of metal construction and parking lots in Europe. The quality of the technical teams and the customer-oriented management make us optimistic about our ability to develop Astron ”, states Gil Briand, president and owner of Groupe Briand. “The sharing of best practices between our subsidiaries is a source of efficiency for our customers and development for our teams”
Find out more about the Briand Group on: https://www.groupebriand.fr/
After the divestiture, Business Area Ventilation Systems will account for approximately two-thirds of Lindab’s sales and Business Area Profile System approximately one-third of sales.
“Our priority for the future is the ventilation activity in Europe. It is mainly within Business Area Ventilation Systems that we implement our extensive investment program and make acquisitions. After the divestiture, we will retain two business areas that are well integrated with each other and in which Lindab has the expertise to continue to grow both sales and profitability ”, continues Ola Ringdahl.
The assignment is subject to antitrust approval in Russia, which should be received within two to four months. Until approval is obtained, Astron will continue to be part of Lindab.
At the time of signing the acquisition contract, a non-recurring cost, mainly linked to the impairment of goodwill, is estimated at approximately 430 million Swedish kronor, which will have a negative effect on the third quarter net income. Non-recurring costs will have no impact on cash flow. The purchase price will be largely offset by Astron’s cash and cash equivalents as well as down payments from customers, and therefore will not have a major impact on Lindab’s total cash flow.
Starting with the third quarter 2021 interim report, Astron will be presented as assets held for sale and discontinued operations.
Press and investor meeting
Lindab invites journalists, analysts and investors to webcast later today with more information on the transaction. There will also be an opportunity to ask questions.
Date and time: September 23, 4:00 p.m. CET.
To participate, register via the web at https://tv.streamfabriken.com/pressconference-2021
SE: +46 856642651 PIN: 14066646 #
UK: +44 333300804 PIN: 14066646 #
United States: +1 6319131422 PIN: 14066646 #
This disclosure contains information which Lindab is obliged to make public in accordance with the EU Market Abuse Regulation (EU No 596/2014) and the Swedish Securities Act (2007: 528). The information has been submitted for publication, through the contact person, the 23-09-2021 15:09 CET.
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