Government sells Destia to Ahlström Capital

The State of Finland has today signed an agreement to sell the entire share capital of Destial Ltd, an infrastructure and construction service company, to Ahlström Capital. The transaction was approved by the Government on 22 May 2014. The purchase price of the shares is EUR 148 million including a capital repayment of EUR 42 million to the State. The purchase price is based on Destia’s enterprise value of EUR 130 million.

The State Ownership Department will hold a press conference concerning the deal today 26 May 2014 at 11.00 a.m. The conference will be broadcast live at vn.fi./live.

Destia’s sale to Ahlström Capital will clarify and increase competition in the infrastructure and construction industry. Destia will continue to operate as an independent, now privately owned company in the construction sector. Before the deal, the State owned two companies competing for railways construction contracts – now the State owns only one rail constructor, VR-Track Ltd.

State ownership in Destia, or in the construction industry in general, is not of any strategic necessity, and the State’s divestment of Destia is justified as it can be accomplished on financially favourable terms in a manner supportive of the personnel. Another argument for the deal is that the State was able to find a domestic buyer committed to the long-term development of the company. The change of ownership will not have any implications for the personnel.

“Aside from the right purchase price, the most important thing for the State was to find a new domestic owner who is committed to a responsible, long-term development of the company in Finland. These arrangements will have no impact on the personnel, employment contracts or supplementary pensions. Under the new owner, the company and its employees can hopefully look forward to growth. I believe that this decision is beneficial to the company, its employees as well as the State,” says Pekka Haavisto, Finnish minister responsible for state ownership steering.

Ahlström Capital is a private equity investment company. It creates added value for its owners by channelling its investments into industrial companies, listed companies, growth companies specialising in environmental technologies, and forests. Ahlström Capital is one of the largest private equity investors in Finland with the combined turnover of its portfolio companies reaching EUR 1.2 billion in 2013.

Destia builds, maintains and designs traffic routes and industrial and traffic environments. Its 2013 turnover was EUR 489.7 million. Destia Ltd was created in 2008 when the former Finnish Road Enterprise, the state agency for road maintenance, was incorporated as a limited liability company. Since then, Destia has engaged in systematic efforts to boost its competitiveness, for example by focusing on its core business, improving cost efficiency and developing its organisation.

Additional information: Ville Hulkkonen, Press Attaché to Minister Pekka Haavisto, tel. 044 0777 226; and Director General Eero Heliövaara, tel. 0295 160 150, Prime Minister’s Office.