Caverion Acquisition: Key Details, Impact, and What Comes Next

The acquisition of Caverion by Assemblin marks a significant milestone in the Northern European technical service and installation industry. This strategic combination, managed by Triton, creates the Assemblin Caverion Group, a leading entity with a strong market presence across ten countries. The merger is set to enhance service offerings, sustainability focus, and operational efficiency, benefiting both employees and customers.

What Is Caverion?

Founded in 2013, Caverion specializes in building performance and smart, sustainable solutions for built environments. Their core services include building new structures, implementing scalable smart technologies, and providing comprehensive maintenance and partnership services. Caverion stands out in the market with its emphasis on smart and sustainable solutions, technological expertise in areas like automation and data centers, and a strong commitment to sustainability. The merger with Assemblin further solidifies their market leadership in Northern Europe.

Who Acquired Caverion?

Assemblin is a key player in the Northern European technical service and installation industry. The company offers a wide range of services, including electrical, heating, plumbing, and ventilation installations, as well as maintenance and energy optimization solutions. Assemblin holds a strong market position, operating across multiple countries with a significant workforce. Their expertise in delivering comprehensive technical solutions makes them a trusted partner for both commercial and residential projects.

When Was Caverion Acquired?

Assemblin completed the acquisition of Caverion on April 1, 2024. This strategic move aligns with industry trends of consolidating technical service providers to enhance operational efficiency and sustainability. The timing also reflects a broader trend of internal restructuring within investment firms, aiming to streamline operations and leverage market opportunities in sustainable solutions and energy efficiency.

Why Was Caverion Acquired?

• Market Expansion: The merger of Caverion and Assemblin significantly broadens their market reach, operating across ten countries with a combined annual turnover of approximately EUR 3.8 billion. This strategic move positions the new Assemblin Caverion Group as a market leader in Sweden, Finland, and Norway, with strong prospects for organic growth and further strategic acquisitions.
• Technology Integration: By combining their technological capabilities, Assemblin benefits from Caverion's expertise in smart and sustainable solutions. The new group will offer advanced services such as Building Information Modelling (BIM), Smart Solutions & Analytics Services, and Technical Installations, addressing the growing demand for energy efficiency and automation in buildings and infrastructure.
• Competitive Advantage: The merger creates a formidable entity with unique capabilities and a shared vision, enhancing their competitive edge. With a workforce of around 21,900 skilled employees and a significant annual turnover, the Assemblin Caverion Group is well-positioned to deliver a broader range of services and sustainable technical solutions, making it a trusted partner for customers and a leader in the industry.

Acquisition Terms

• Acquisition Price: The acquisition price was not publicly disclosed.
• Payment Method: The transaction involved a combination of shareholder bridge loans and bank debt acquisition financing.
• Key Conditions or Agreements:
  • The transaction received all necessary regulatory approvals.
  • The combination was carried out through internal restructuring within Triton, with Triton's ownership in Assemblin and Caverion combined under the same holding structure.
  • Caverion's immediate ownership structure and status as an independent legal entity remain unchanged.
  • The ongoing redemption proceedings of the minority shares in Caverion are not impacted.
  • Triton and Crayfish BidCo Oy intend to delist Caverion's shares from Nasdaq Helsinki Ltd by the second quarter of 2024.
  • Changes in Caverion’s Group Management Board were announced, with specific executives stepping down and new appointments being made.
  • The acquisition financing is expected to be refinanced as part of the combined proforma capital structure post-merger.
  • The amortization of Purchase Price Allocation (PPA) related assets was mentioned as a key accounting condition.

Impact on Caverion

The acquisition of Caverion by Assemblin has led to significant changes in operations and management. Mats Johansson, previously CEO of Assemblin, now serves as the Group CEO, while Jacob Götzsche, former CEO of Caverion, has taken on the role of Executive Chairman of the Board of Directors. The merger has also resulted in changes to Caverion’s Group Management Board, with key executives stepping down and new appointments being made. This restructuring aims to streamline operations and leverage the combined expertise of both companies to enhance their market position.

The merger has broadened the range of services and sustainable technical solutions offered by the new Assemblin Caverion Group. The focus on energy efficiency, sustainability, and automation has been strengthened, benefiting customers with more comprehensive and advanced offerings. Employee reactions have been generally positive, with the new group emphasizing its commitment to being an attractive employer. Customers are expected to benefit from the enhanced capabilities and market leadership of the combined entity, which aims to meet evolving demands more effectively.

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