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Fri November 27 2020

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Swedish acquisition for Veidekke

17 Dec 13 Veidekke has bought Stockholm-based contractor Arcona, which has 180 employees and an annual turnover of SEK1bn (£93m).

Arcona's projects include the Quality Hotel in Stockholm's Globe area
Arcona's projects include the Quality Hotel in Stockholm's Globe area

The acquisition also includes majority shareholdings in the companies Exengo Installationskonsult and BSK Arkitekter.

Veidekke and Arcona have signed a letter of intent under which Veidekke will acquire all shares in Arcona by the end of the year. The agreed purchase price is approximately NOK150m (£14.9m).

For Veidekke, this acquisition marks a further step towards its goal of growing in Sweden, and especially in the Stockholm region. "We are very glad to have Arcona as part of the team. The customer portfolios of the two companies complement each other, and this acquisition will increase our market potential and our possibility of competing for large projects," said CEO Arne Giske.

Arcona's main activity is in commercial building and residential development, as Arcona Consept. It uses lean construction in its work. "This acquisition also gives us access to specialist competence in architectural services and technical installations through BSK Arkitekter and Exengo Installationskonsult, which will strengthen the group's combined development potential," said Giske.

Arcona, BSK Arkitekter and Exengo Installationskonsult will continue to operate as independent entities under their existing brands, but organisationally they will be subsidiaries of Veidekke Entreprenad.

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MPU

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