Dovre Group sells its Project Personnel and Norwegian consultancy activities to NYAB AB | 20.11.24

Dovre Group Plc Stock Exchange Release – Inside Information November 20, 2024, 10:00 PM

Dovre Group sells its Project Personnel and Norwegian consultancy activities to NYAB AB

Under a conditional agreement signed on November 20, 2024, Dovre Group Plc (Dovre) will sell its entire Project Personnel (PP) business and Norwegian Consulting business to Sweden’s NYAB AB for an estimated EUR 34 million in cash. The closing of the transaction is expected to occur on or about January 2, 2025.

The entities sold in the Project Personnel business will consist of all entities comprising Dovre’s Project Personnel business worldwide, i.e. Dovre Group Energy AS (Norway), Dovre Canada Ltd, Dovre Group Inc. (USA), Dovre Group (Singapore) Pte Ltd, Dovre Asia Pte Ltd (Singapore) and Dovre Group Korea Ltd. Dovre Group’s project staff in the EMEA region, including PP consultants in Finland, will also be transferred. Dovre Group Consulting AS (Norway) is also involved in the transaction.

Key figures of the activities sold

The entities involved in the transaction employed 604 people at the end of Q3 2024.

Purchase price

The total amount is estimated at approximately EUR 34 million. This is based on a provisional enterprise value, determined as the estimated EBIT for the 2024 financial year of the activities sold (4.3 MEUR) multiplied by 7 plus a compensation for the estimated net cash flow and an adjustment for the estimated working capital position as of December 31, 2024. From of the provisional purchase price payable at closing, Dovre Group will receive 80% in cash, while 20% will be deposited in a blocked account as security in favor of the buyer to meet any reimbursement obligations of Dovre Group in relation to the final purchase price. The final purchase price will be determined after closing based on the actual adjusted EBIT for the 2024 financial year and the actual net cash and net working capital positions as of December 31, 2024.

Consequences of the intended transaction for the activities of Dovre Group

The entities involved in the transaction represent more than 50% of Dovre’s turnover. As a result of the transaction, the group’s operating cash flow can be expected to be significantly lower during the 2025 financial year. The retained activities consist mainly of large renewable energy projects, which will naturally increase the fluctuations in Dovre’s revenues and cash flows .

“NYAB is the perfect buyer for our consulting and project staffing businesses. It is an excellent strategic, cultural and geographic fit and will ensure future growth and profitability for the entities as part of NYAB. At the same time, the transaction supports Dovre Group in our strategic efforts to streamline our Green Energy activities,” says Svein Stavelin, Chairman of the Board of Directors of Dovre Group.

Dovre revises its guidance for 2024. To deconsolidate the divested businesses, the revised outlook includes only the retained businesses. According to the outlook of November 20, 2024, Dovre Group’s net sales in 2024 were expected to be between 210 and 220 MEUR and operating profit (EBIT) was expected to be between -1.5 and -2.0. MEUR, consisting of both the sold and retained activities. According to the revised outlook for the retained activities, Dovre Group’s net sales in 2024 are expected to be between 88 and 93 million euros and operating profit (EBIT) is expected to be between -5 and -6 million euros. The transaction will have no impact on the group’s financial results in 2024, but will be fully booked in 2025.

Dovre’s Board of Directors supports the transaction as it allows the company to strategically reposition itself in the market, including new business focus and monetary resources to implement it. Dovre will begin its strategic work on the future direction of the company without delay after the completion date. The specific destination of the proceeds will be determined upon finalization of the company’s strategy and may include investments and/or the payment of dividends to shareholders.

The estimated transaction costs total €400,000.

Timing and completion conditions of the contemplated transaction

Completion of the transaction is expected to occur on or about January 2, 2025, and is subject to approval and authorization by the Extraordinary General Meeting of Dovre Group Plc on a date to be announced by invitation as a separate stock exchange announcement. . In addition, the completion of the transaction is subject to other customary closing conditions.

Dovre’s advisors

Dovre’s financial advisor in connection with the transaction was Aalto Capital Norway. The principal legal advisor for Dovre was Waselius Attorneys Ltd in Finland, with Advokatfirmaet Simonsen Vogt Wiig AS acting as legal advisor on local Norwegian matters. Dovre’s Chairman of the Board, Svein Stavelin, is Managing Partner at Aalto Capital Norway.

For more information please contact:

Svein Stavelin, Chairman of the Board of Directors
Tel. +47 900 64 361
[email protected]

Arvé Jensen, CEO
Tel. +47 906 07 811
[email protected]

Ilari Koskelo, vice-chairman of the board of directors
Tel. +358 40 510 8408
[email protected]

Dovre group is a trusted global provider of project management services with locations in Canada, Finland, Norway, Singapore, Sweden and the United States. Our professionals carry out assignments all over the world. In 2023, the Group’s net turnover amounted to EUR 196.7 million and the operating result to EUR 7.4 million. The Group’s parent company, Dovre Group Plc, is based in Finland and listed on Nasdaq Helsinki (symbol DOV1V). Dovre actively participates in the green transition and contributes to an environmentally and socially sustainable future. Website: www.dovregroup.com

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