Acquisition of Kvinnherad Elektro and Vassnes Group closed

EQVA ASA (OSE: EQVA) (“EQVA”) and Kvinnherad Elektro AS, a full-service power and automation company, announced a business combination agreement on 14 May 2024. The transaction has now been closed. The agreement includes Kvinnherad Elektro’s 51 percent ownership in Vassnes Solutions AS, a group of leading engineering, welding, power and automation services companies.

‍

After this transaction, Nordic Industrial Solutions (NIS), the newly formed industrial group owned by EQVA, will be the sole owner of the BKS Group and Kvinnherad Elektro Group. NIS will become a platform for further expansion and value creation with EQVA as its main owner.

This move, considered to be of high strategic value, will result in the establishment of a prominent and fully integrated system supplier within the piping, power and automation disciplines. The agreement strengthens EQVA and NIS’s position as a leading supplier for the upcoming significant upgrade and restructuring of Norwegian industry. After consolidation, NIS will consist of more than 550 highly qualified employees, of which 270 will be engaged within the business segment power and automation.

The business combination will significantly increase NIS’s capabilities and expertise in attractive power and automation markets. It will also increase the company’s flexibility to undertake major contracts in engineering, green transition and electrical services.

“Through the establishment of NIS and acquisition of Kvinnherad Elektro and Vassnes Group, EQVA continues to deliver on its strategy for growth and broadening of its service offering. This combination enhances NIS’s access to attractive markets in Western Norway such as the smelting industry, maritime industry, and offshore industry. We look forward to working with our new colleagues in both Ølen and Rosendal and will strive to further enhance our service offering for our valued customers,” said Even Matre Ellingsen, CEO of EQVA.

Following the transaction, both Kvinnherad Elektro and Vassnes Solutions will continue to operate under their current brand and management, ensuring a seamless continuation of their operations.

«We are excited to become part of EQVA. We have a history of close collaboration with EQVA’s subsidiary, BKS, and we operate in the same region and markets. This merger gives us an opportunity to increase our market share and strengthen the competence and quality of our services to both existing and new customers. We also see potential to undertake larger multidisciplinary projects in the future," said Kjetil Helvik, general manager of Kvinnherad Elektro.

About Kvinnherad Elektro:

Kvinnherad Elektro, with its over 80 years of experience, is a full-service supplier for power and automation installations. The company serves customers in the smelting industry, fish farming, shipyards, transport construction projects, and households. With a team of 42 employees, including skilled engineers and installation experts, Kvinnherad Elektro is recognized as a trusted partner in the power and automation industry.

About Vassnes Solutions:

Vassnes Solutions is a leading group of engineering, welding, and power and automation service companies. Vassnes Solutions and its three subsidiaries Vassnes Mechanical AS, Vassnes Power AS and Vassnes Engineering AS deliver high-quality services to various sectors within the land-based and maritime industry. The group consists of a total of 160 employees with electrical engineering, installation, and welding expertise.