Fjordkraft goes Nordic
Norway’s largest end-user company in the electricity retail market acquires electricity retailer Switch Nordic Green (SNG) from Troms Kraft AS. Through the acquisition the Fjordkraft group will be the owners of an established retailer in the Swedish and Finnish market with potential for further growth.
– Switch Nordic Green, with its brand Nordic Green Energy, is perceived as a green and renewable focused supplier and provides a good basis for further growth and a strong match for Fjordkraft. The acquisition positions Fjordkraft for further growth in the Nordics, as the markets become more similar and competition becomes increasingly pan-Nordic, Executive Vice-President (EVP) and Head of Strategy and M&A, Arnstein Flaskerud says.
– Today we are selling a well-run company with competent employees who work every day to create good results, and we believe that Fjordkraft will be a good owner for our Swedish and Finnish employees in SNG for the future, CEO in Troms Kraft, Semming Semmingsen comments.
The purchase price is based on an enterprise value of the Target of NOK 375 million on a cash and debt free basis and assuming an agreed normalised level of working capital. In addition to the enterprise value, there are tax losses carried forward in the Target and its subsidiary. The parties have agreed on a valuation and distribution of values between the parties associated with tax positions in the group that forms part of the undertaking on transfer and that is a result of the historic losses generated in the business. The purchase price shall be paid in cash by the Company to Troms Kraft AS.
– Through the acquisition of the Norwegian retailer Innlandskraft AS this summer, we became the largest player in the electricity retail market in Norway. We enjoy being on our toes and in a challenger position, which is the case when entering Sweden and Finland, says Executive Vice-President (EVP) and Head of Strategy and M&A, Arnstein Flaskerud.
Closing of the Transaction is expected to take place in November 2020, subject to satisfaction of the closing conditions.
Switch Nordic Green - Nordic Green Energy:
SNG had a total number of electricity deliveries of 167 thousand as per 31 August 2020, of which 100 thousand in Finland and 67 thousand in Sweden.
Fjordkraft is the number one brand and the largest end-user company in the Norwegian electricity retail market. The Company supplies electricity to an estimated 1.8 million people through more than 900,000 electricity deliveries within households, businesses and public entities across Norway. Fjordkraft became a mobile service provider in April 2017 and is currently Norway’s largest service provider without its own network.
Fjordkraft’s offices are located in Bergen, Trondheim, Sandefjord, Oslo, Stavanger, Vinstra, Hamar, Kongsvinger and Sortland. In 2019, total revenues amounted to 7.1 billion Norwegian kroners.
Troms Kraft is a leading energy company in Northern Norway, a fully integrated energy provider with an annual production of 1,1 TWh in its 10 hydropower stations and one wind park. It has a 10 000 km grid that serves about 78 500 customers in 12 municipalities and a successful end user operation with more than 120 000 customers nationwide. The group headquarter is located in the city of Tromsø, with several local units across its operational area. Troms Kraft is fully owned by public entities; Troms Holding AS (60%) and Tromsø municipality (40%). Total revenue for the group in 2019 was NOK 5 billion, with an EBIT of NOK 572 million.
The law firm Schjødt AS has been a legal advisor, and PwC has been a financial advisor to Fjordkraft in connection with the transaction.
The law firm Wiersholm has been a legal advisor and KPMG has contributed to financial assessments for Troms Kraft.
For queries, please contact:
- Troms Kraft AS, CEO Semming Semmingsen: Mobil +47 915 77 915 Semming.Semmingsen@tromskraft.no
- Fjordkraft Holding ASA, Executive Vice-President (EVP) and Head of Strategy and M&A, Arnstein Flaskerud: Mobil +47 950 82 296