Höganäs Borgestad Holding AB ("Höganäs Borgestad"), a subsidiary of Borgestad
ASA ("Borgestad"), has on 17 June 2025 entered into an agreement to acquire 100
percent of the shares in Emcotech AB ("Emcotech"), a Sweden-based company
specializing in industrial flue gas cleaning. 

ABOUT EMCOTECH

Emcotech was founded in 1995 and has established itself as a trusted partner to
industries such as pulp and paper, energy production, and heavy manufacturing.
The company specializes in delivering systems that capture and neutralize
pollutants, ensuring cleaner air and supporting more sustainable industrial
processes. 
Emcotech's solutions enable clients to maintain high operational standards while
minimizing environmental impact. In addition to system design and
implementation, the company offers high-quality spare parts with fast delivery
times to minimize operational downtime.

In 2024, Emcotech delivered a revenue of SEK 45.4 million and an EBITDA of SEK
6.4 million.

STRATEGIC RATIONALE

The integration of Emcotech into the group is driven by Höganäs Borgestad Energi
& Ugnsteknik AB's ("HBEU") dual setup, which combines industrial mechanics and
filter services. As part of the same group, the intention is for Emcotech and
HBEU to establish a stronger position in the industrial filter market. 

Immediate synergies across the companies include the sharing of technical
expertise, resources, and equipment, improving both sales and operational
efficiency. With each company already present at various customer sites - either
individually or jointly - there are clear opportunities to broaden service
offerings and increase market share.

"We are very pleased to welcome Emcotech into our group. This acquisition
strengthens our position in the niche of flue gas cleaning - a field that is
critical for many of our customers and increasingly important in the transition
to more sustainable industrial processes.

While this is not our largest acquisition, it brings significant strategic value
by adding highly competent personnel, as well as strong customer and supplier
relationships. We look forward to building on Emcotech's solid foundation and
continuing to grow together," says Bendik Persch Andersen, CEO of Höganäs
Borgestad.

TRANSACTION TERMS

The transaction will be settled with a payment of SEK 10.5 million for the
shares at closing, subject to adjustment for any deviations from historically
seasonal working capital levels and net debt as of closing. In addition, a
contingent performance-based earn-out, capped at SEK 10 million, will be payable
18 months after closing, subject to fulfilment of the relevant conditions. 

Closing of the transaction is expected by the end of June 2025, subject to
certain customary closing conditions.

The transaction will be financed through loan commitments from Nordea,
consisting of a mortgage facility of SEK 9 million and an overdraft facility of
SEK 10 million. The terms and conditions for the new loan commitments will
essentially correspond to those of the existing loan agreements with Nordea, as
communicated in Borgestad's stock exchange announcement on 3 June 2025.

The contact person is Pål Feen Larsen, CEO Borgestad ASA, +47 488 45 333

This information is subject to the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.

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About Borgestad| www.borgestad.no 
Borgestad ASA (OSE:BOR) is an investment company focused on real estate and
industry. The key investments include Agora Bytom shopping center and the
leading refractory manufacturer Höganäs Borgestad.

About Höganäs Borgestad | www.hoganasborgestad.com
Höganäs Borgestad develops, manufactures and delivers refractory products,
installations and turnkey solutions that enhance the productivity and
competitiveness of industrial customers. The aim is to contribute to the
customers' profitability by providing high-value refractory solutions to their
challenges. Today, the company is a leading supplier in the refractory market of
the Nordic countries.