Nobina completes strategic acquisition of KE'S Bussar and strengthens its position in western Sweden
STOCKHOLM, Dec. 15, 2020 /PRNewswire/ -- Nobina has entered an agreement to acquire the bus company Karl Erik Elofsson Buss Aktiebolag, domiciled in Kungsbacka, western Sweden. The acquisition strengthens Nobina's position in western Sweden and broadens its contract portfolio, at the same time as there are new synergies between existing contracts, forthcoming tenders and bus-for-rail services. The acquisition encompasses a business with approximately 100 buses and 100 employees in tendered regular services and school bus services in addition to coach hire and bus-for-rail services. The transaction represents a continuation of Nobina's acquisition strategy to both broaden and grow its operations in the Nordic market, while building a platform for increased competitiveness in small-scale contracts.
The acquisition will add some ten new contracts, the majority of which extend to 2029 or 2030. KE'S Bussar holds a strong position in the region and has deep local roots encompassing both competence and employees, and together with Nobina can continue to grow and develop regionally and via new synergies.
"The acquisition of KE'S Bussar is the fourth such transaction over a period of two years and represents an important part of our strategy moving forward. It has been a deliberate journey to identify and analyse the right opportunities and companies that can potentially grow, broaden and supplement our business while also identifying new synergies together with Nobina's size, technical expertise and understanding of the dynamics in important community services such as public transport and traffic optimisation," says Magnus Rosén, CEO and President of Nobina.
"We are delighted to welcome KE'S Bussarand all of its employees to Nobina, where we can use our shared expertise to continue to grow and develop personnel and public transport for our passengers and society. This is an area in which KE'S Bussar offers several positive opportunities for collaboration and synergies in both contract and bus-for-rail services, in parallel with creating a platform for increased competitiveness in small-scale contracts," says Henrik Dagnäs, Managing Director, Nobina Sverige AB.
"We are pleased to have reached an agreement with such a major and long-term operator as Nobina and to now jointly embark on this journey and continue to build on our new and shared strengths, while retaining KE'S Bussar identity and brand, but as part of the Nobina Group," Magnus Elofsson, CEO of KE'S Bussar.
Today, KE'S Bussar is a family-owned business and has reported stable sales and profitability in recent years combined with good capacity to win new contracts. The company currently has a young contract portfolio with average annual sales of approximately SEK 90 million over the past three years and favourable profitability. The acquisition will create growth and is expected to make a positive contribution to the Group's earnings and margin from takeover. KE'S Bussar brand and business will continue to be developed but as a wholly owned subsidiary of Nobina Sweden.
CONTACT:
For further information, please contact:
David Erixon, Head of Communications, +46 72 967 02 84
Mattias Gelinder, Head of IR, +46 72 967 02 61
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