3 August 2022 - Elop AS (Elop) has agreed the principal terms of an agreement
where Elop is to acquire 65 percent of the shares of fast-growing electrical
contractor Hadeland Elektro AS (Hadeland Elektro) for a total consideration of
NOK 24.7 million, of which 60 percent will be settled in Elop shares valued at
NOK 2.80 per share.
Through this planned investment, Elop reaffirms its target to deliver cash
positive operations in 2023.
"An investment in Hadeland Elektro will further strengthen our specialist
service offering towards construction, maintenance and inspection in the Nordic
infrastructure market, including the energy sector, road and rail
infrastructure, as well as inspection services for these and other segments. It
is a well-run, profitable company that fits Elop's strategy perfectly" says
Øivind Horpestad, CEO of Elop.
In June, Elop announced a revised group strategy where it communicated an
ambition to expand value add beyond being a product provider and actively
utilize M&A to move into adjacent segments across the infrastructure value
The first move under this new strategy was revealed on 5 July 2022, when Elop
announced the planned acquisition of 100 percent of the shares in Nordic
Infrastructure Group AS in a deal that values Elop at NOK 2.80 per share. This
acquisition will move Elop higher up in the infrastructure maintenance,
construction, and testing, inspection, and certification value chain.
Elop will consist of three business areas:
1. Elop Technology: Inspection hardware and software, including Elop Insight,
Elop Insight Crawler, and other ultrasound-based scanner solutions from Elop.
2. Construction, maintenance, and specialist services: In Norway, Sweden and
Finland through Nordic Infrastructure Group AS and Hadeland Elektro AS.
3. Inspection services: Through a newly established company that will utilize
Nordic Infrastructure Group and Hadeland Elektro's client base to build up a
joint inspection offering towards asset owners, including driving the adoption
and utilization of Elop Technology's inspection hardware and software.
"Hadeland Elektro and Nordic Infrastructure Group are highly complementary from
both a discipline and client base perspective. We look forward to making them
our first building blocks of our profitability-focused growth strategy," adds
ABOUT HADELAND ELEKTRO
Hadeland Elektro is an electrical contractor that delivers complete
electrotechnical solutions for construction and infrastructure projects,
including the energy, rail and road sectors. The company possesses all necessary
approvals for high and low voltage work for the rail industry, and also performs
inspection work of high-voltage grids.
Hadeland Elektro's customers are mainly private construction contractors and
public infrastructure owners and operators. Over the past few years, the company
has built up an impressive portfolio of frame agreements and contracts. As of 30
June 2022, the company had an order backlog of NOK 40 million.
Since 2018, the company has delivered a compound annual growth rate of 139
percent, with 2021 revenues of NOK 43.6 million and profit before tax of NOK 6.2
million. In 2022, Hadeland Elektro expects to deliver revenues of around NOK 50
million and profit before tax of approximately NOK 6 million. The company has no
The company employs 17 people and is headquartered at Gran at Hadeland in
Innlandet county, Norway. It serves customers nationwide in Norway.
"We have in recent years received numerous offers to sell the company. When we
started discussions with Elop and understood how they want to build an
infrastructure specialist group in a manner that allows us to become
shareholders of in Elop and remain shareholders of Hadeland Elektro, we were
very excited. We firmly believe in Elop's strategy of building a group that
consists of unique technology, inspection services and project execution
services, with collaboration opportunities across the group. We see huge
potential for synergies and growth, which coupled with continued high demand for
our services bodes well for the future," says Jon Haugsbakken, managing director
and chairman of Hadeland Elektro.
Elop and Hadeland Elektro have agreed to the principal terms of an agreement
where Elop will acquire 65 percent of the shares in Hadeland Elektro. The
purchase price for the shares in Hadeland Elektro shall be based on an
enterprise value NOK 38 million. The share purchase will be settled by NOK 14.05
million in Elop shares valued at NOK 2.80 per share and NOK 10.64 million in
cash. The consideration shares will consist of a combination of treasury shares
and new shares issued in Elop, subject to approval by Elop's annual general
meeting. The cash consideration will be adjusted if Hadeland Elektro should
deliver a profit before tax that is lower than the indicated NOK 6 million for
All shareholders in Hadeland Elektro have agreed to 12-36 months lock-up period
for their shares in Elop. Further, Elop has an option to acquire the remaining
35 percent of Hadeland Elektro within five years from the closing date.
The transaction is subject to customary closing conditions, due diligence, and
final transaction documentation. Signing of share purchase agreement is expected
to be on or about 31. August 2022, with expected closing mid September 2022.
Elop will continue to look for acquisition opportunities that are a good fit for
the group's strategy and can strengthen its specialist service offering within
construction, maintenance and inspection in Norway, Sweden and Finland.
"Elop has a strong balance sheet with zero debt, NOK 130 million in cash per 31
July, and a NOK 50 million credit note that shall be settled within the next 30
months. We are well equipped to fund organic growth and capitalize on further
acquisition opportunities," says Øivind Horpestad.
Øivind Horpestad, CEO, Tel: +47 910 00 626