AF Gruppen strengthens its position in greater Oslo
AF Gruppen has signed a letter of intent with BundeGruppen to take over 51 per cent of the shares in BundeBygg. The takeover of shares will be carried out by incorporating the AF Nybygg business unit with employees and associated projects in BundeBygg. The transaction does not involve any cash remuneration. The agreement gives AF Gruppen an option to increase its stake in BundeBygg to 70 per cent in three years. Following this move, BundeBygg will have around 200 employees and will be headed by Geir Flåta. Flåta has extensive experience from AF Gruppen and currently heads AF Nybygg.
BundeBygg was established in 1992 and is a subsidiary of BundeGruppen. The company is involved in contracting operations in Oslo and the surrounding area, with primary focus on new construction and the rehabilitation of residential and commercial buildings. BundeBygg’s turnover in 2016 was NOK 1.2 billion.
AF Gruppen currently enjoys a good position in building in greater Oslo through units such as AF Bygg Oslo, AF Byggfornyelse, MTH, Strøm Gundersen and Haga Berg. The AF Nybygg business unit was established as a new unit in January 2017 to offer customers a greater range of services in a growing market.
“This move strengthens AF Gruppen’s strategic effort in a growing market in greater Oslo. With its long-term customer relationships and numerous collaborative contracts, BundeBygg has a strong position in the market. When teamed up with AF Nybygg, BundeBygg will be a good supplement to AF Gruppen's strong position in greater Oslo,” says Morten Grongstad, CEO of AF Gruppen.
“With AF Gruppen on our team, BundeBygg has a strong backer. We can combine the best from two good market players; management, systems and structure from AF Gruppen, and good customer relationships, collaboration contracts and projects from BundeBygg. We’re convinced this will create good value for customers, employees and owners,” says Odd-Erik Bunde, CEO of BundeGruppen.
The transaction is subject to due diligence and approval by the Norwegian Competition Authority. The transaction is expected to be finalized in Q4 2017.