Nordic Infrastructure Group AS has today signed the share purchase agreement to acquire 100 percent of the shares in railway contractor Banefjell AS.
Reference is made to the stock exchange announcement dated 4 July 2023 regarding the planned acquisition.
“The acquisition of Banefjell strengthens Nordic Infrastructure Group’s position in south-west Norway, and will enable us to jointly take on larger project scopes together. We look forward to combining our capacity and specialist railway competence to win more work together,” says Gjermund Sogn, CEO of Nordic Infrastructure Group.
Banefjell is an experienced railway contractor that delivers a wide range of services including operations and maintenance, track and sleeper replacement, concrete rehabilitation, signalling and electrical work, and salvage operations. Its main clients are Bane NOR and VY Gruppen, who Banefjell supports on the southern railway line (Norwegian: “Sørlandsbanen”) in Norway.
The company was established in 2013 and has generated steady revenue growth since inception. In 2023, the company delivered revenue of NOK 125 million with an operating profit (EBIT) of NOK 14 million. The company has a healthy balance sheet with close to zero debt. Banefjell has delivered positive financial results every year it has been in operation.
Banefjell is valued at NOK 77 million in the transaction. The acquisition will be settled 45 percent in Nordic Infrastructure Group shares and 55 percent in cash in three different tranches.
Closing of the transaction is expected by the end of March 2024.
