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Saferoad divests Water & Sewage business in Sweden

Oslo, 22 June 2017: Saferoad Holding ASA ("Saferoad" or the "Group") has entered into an agreement to divest its Water & Sewage business in Sweden to Ahlsell AB. The agreement also includes a cooperation agreement with Ahlsell for the distribution of Saferoad's advanced geotechnical products used in small and medium-sized construction projects in Norway and Sweden.

The Swedish Water & Sewage business started its operations in 2004 and became part of Saferoad in 2011 through the acquisition of ViaCon. It has established a strong position with several major customers in the construction sector and has annual sales of approximately SEK 320 million, with 81 employees at 11 locations in Sweden. Water & Sewage is not a part of Saferoad's core offering across its geographical footprint, and this transaction will have an immediate positive impact on the Group's EBITDA margin. The gross cash proceeds will be approximately SEK 90 million, depending on the value of inventory at closing, and the transaction is expected to result in a minor accounting gain.

"This divestment is a strategic step towards focusing Saferoad's core business and enhancing Group margins, and the transaction releases resources to drive value in our other business areas", says Morten Holum, CEO in Saferoad.

"The acquisition adds valuable expertise and strengthens our initiatives directed to attractive customer segments within construction and infrastructure", says Johan Nilsson, President and CEO of Ahlsell Group.

The transaction is structured as a transfer of assets including inventories, equipment and immaterial property related to the Swedish Water & Sewage operations of Saferoad's subsidiary, ViaCon AB, which is part of the Road Infrastructure Nordic division.

The transaction is planned to close in September 2017 and is subject to approval by the Swedish Competition Authority.

For more information, please contact:
Morten Holum, CEO
+47 99 50 99 30