Inin Group AS has today signed a share purchase agreement (SPA) to acquire 100 percent of the shares in Laje AS, a large, regional infrastructure construction and service company. Consequently, Inin Group will raise its 2023 full-year pro-forma revenue and EBIT guidance.
Laje has a workforce of 275 employees with a strong mix of electricians, energy and telecom installers and engineers, led by an experienced management team headed up by CEO Anders Granheim. Laje has a strong backlog, and 2023 revenue is expected to reach NOK 700 million.
“This acquisition makes us a major player within energy infrastructure, telecom and electrification in the central eastern Norway region, including Oslo, Lier, Ringerike, Maura, Hamar, Lillehammer, Raufoss, Sandefjord and Kongsvinger. We are delighted to add Laje to our rapidly growing portfolio of infrastructure services companies in the Nordics, and to include Laje as a core company within our Power Distribution business vertical,” says Øivind Horpestad, CEO of Inin Group.
About Laje AS
Laje is a focused infrastructure construction and service company within the energy infrastructure, telecom and electrification sector with a strong position in the eastern Norway region. The company was established in 2002 and is currently owned by Ringerikskraft.
Laje’s business is divided into three business segments energy infrastructure, telecom and electrification, all focusing on the ongoing electrification and digitalization megatrends. The energy infrastructure segment is the company’s largest in terms of revenue, and includes construction and engineering of grid lines, substations and high-voltage cables. The telecom segment incorporates construction and rollout of fibre networks, while electrification involves construction and maintenance of roadside electrical infrastructure such as EV charging stations, streetlights, data centres and public lighting.
“There is significant growth potential in all of Laje’s business segments, driven by electrification and digitalization megatrends on top of substantial underinvestment in Norwegian electrical infrastructure,” adds Øivind Horpestad.
Laje is headquartered in Hønefoss with additional outreach from strategic locations across central-eastern Norway. The broad presence makes Laje well-positioned to serve large framework agreements with the major grid companies in the region.
The annual value of Laje’s current framework agreements is approximately NOK 490 million.
In total, Laje has a workforce of 275 employees with a strong mix of electricians, energy and telecom installers and engineers, led by an experienced management team headed up by CEO Anders Granheim.
Laje has completed a significant improvement programme, including organisational restructuring and streamlining during the second half of 2022. For 2023, Laje expects to deliver revenue of more than NOK 700 million and EBITA of approximately NOK 20 million. Reported financials for 2023 is still impacted by the organisational restructuring and streamlining in Laje. The operational enhancements and improved financial results are expected to continue going forward, and thereby strengthen the EBIT margin.
“Ringerikskraft’s infrastructure construction and maintenance business has been on a major growth journey since its inception, having evolved from the local Ringerike market to become a larger national electrical contractor. With Inin Group as its owner, Laje will be able to capitalise on growth opportunities thar are key to the contractor market, while Ringerikskraft at the same time can strengthen its efforts within hydropower, power grids and heating,” says Alf Inge Berget, chairman of Laje AS and CEO of Ringerikskraft.
Closing of the acquisition is expected in the third quarter of 2023. The acquisition will be financed with cash, debt and deferred earn-out payments based on the realised EBITDA for 2023 and 2024.
Updated guidance
As a consequence of the planned acquisition of Laje AS, Inin Group raises its 2023 full-year pro-forma revenue guidance from the earlier communicated (see stock exchange announcement dated 1 June 2023) NOK ~800 million to NOK ~1.5 billion, including Inin Group’s already announced acquisitions.
Inin Group also increases its 2023 full year pro-forma EBIT guidance from NOK 93 million to NOK 110-115 million following the acquisition of Laje.
“I believe it is worth reminding everyone that at this time last year, Inin Group’s only portfolio company was Elop Technology, which was a loss-making entity. We have since then conducted a major strategy change and an acquisition-driven turnaround that I’m very proud of., We have a very strong team that is capable of building strong platforms. Our focus is, and will continue to be, building shareholder value”, concludes Øivind Horpestad.
Three investment platforms
Inin Group currently consists of three investment platforms:
- Rail Infrastructure, headed up by Nordic Infrastructure Group AS
- Power Distribution, currently headed by Hadeland Elektro AS
- Testing, Inspection & Certification, headed by Nordic Inspekt Group AS
A fourth investment platform, Mass Handling & Recycling, will be established following the completion of the previously announced planned acquisition of TW Gruppen AS.
