Dovre Group will purchase majority share of Suvic Oy
Dovre Group has made a conditional agreement to purchase a controlling share (51%) of a Finnish windmill construction design and construction company Suvic Oy, which specializes in building windmill park infrastructure as a turn-key solution as a single contractor. A windmill park project includes designing and constructing roads, foundations, internal power grid, main power grid and power station. Suvic also performs turn-key solutions for windmill foundation design and construction. This purchase will add to Dovre’s portfolio offering in the renewable energy sector in a very concrete way in Scandinavia. The transaction is expected to complete by the end of Q1 2021.
Suvic’s revenue in 2020 was 32 million euros (2019: 23 million) and the EBIT 0.9 million euros (0.9). The company was founded in 2017 and despite of its strong organic growth it has been able to maintain its profitability. In 2021 Suvic Oy is expecting its revenue and profit to remain at least at 2020 levels. Suvic Oy is headquartered in Oulu with 23 employees and it will continue its operations as part of Dovre Group, but as an independent operational unit.
Dovre Group will purchase 510 shares of Suvic Oy (51% of all outstanding shares) from the founding partners, who have committed to continue to work for the company. The zero debt and net cash purchase price of the transaction is about 3 million euros, consisting of 2 million euros in cash and 3 million shares of Dovre Group payable to the sellers. On a pro forma basis, the combined revenue of the companies in 2020 would have been 109 million euros and combined EBIT 3.2 million euros.
“Most of the large oil and gas companies have already invested and will heavily invest in the future into renewable energy sector. Dovre Group has already participated in several onshore and offshore wind farm projects in Norway. Dovre’s strategy is to serve our existing energy and oil & gas sector clients in their renewable energy projects as well as continue building a portfolio of new clients. The purchase of Suvic Oy is an important step in our plan for this growth strategy in renewable energy”, says Dovre Group’s Chairman of the Board Svein Stavelin.
“Dovre Group will be an excellent partner for us in our own expansion strategy to serve markets outside Finland. Our growth has been very aggressive and the additional financial resources of Dovre Group will enable further growth. Suvic’s strategy has been from the beginning to serve Scandinavia and Dovre’s help in opening these markets is very important for us. Our customers will benefit from our broader shoulders”, says Suvic Oy’s Chairman of the Board Ville Vesanen.
The transaction is not expected to cause material non-recurring expenses. Dovre Group will issue its guidance for 2021 without delay if the transaction is completed.