Malmö, Sweden-based BE Group, a trading and service company in steel and other metals, has announced that it is acquiring Lecor Stålteknik AB, a steel construction company employing 26 people at its plant in Kungälv, Sweden. The acquisition is in line with BE Group's strategy to strengthen and broaden its production service offering, the company said.
According to a BE Group statement, Lecor Stålteknik's sales for the most recent year of operations, which ended in June, amounted to SEK 146 million ($21.3 million), adding that its customers include the Swedish Transport Administration and several construction and port companies.
The purchase consideration for the shares amounts to SEK 84 million, of which SEK 28 million will be paid when BE Group takes possession of Lecor Stålteknik AB. The acquisition is being financed within BE Group's existing credit facilities. BE Group will assume responsibility for operations with immediate effect. The acquisition is expected to have a positive effect on the earnings of BE Group's Business Area Sweden in the fourth quarter.
BE Group's president and CEO Lars Bergström said, "Lecor Stålteknik's know-how in design, production, project management and technology strengthens our market position, and the acquisition will create new opportunities for competitive deliveries of advanced steel structures."