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Geveko (STO:GVKOB) Geveko has today signed an agreement concerning acquisition of the road marking operations within the state-owned company Destia Ltd in Finland.
Destia roadmarking operations is market leader in Finland within contract road marking services. The turnover amounted to approx. SKr 100 million in 2007. Destia road marking is operating in almost all parts of Finland.
"The acquisition is in line with our strategy to strengthen our market leadership in Europe and to increase integration between material production and contracting within Geveko, says Hans Ljungkvist, CEO and Managing Director of Geveko. Together with our Swedish and Norwegian road marking companies we now reach the possibility to operate within contract road marking services in all Nordic countries thus enabling us to achieve higher level of efficiency within logistics and use of equipment. Together with the acquisition of the Norwegian Mesta roadmarking operations earlier this year, this acquisition will mean important additional volume in the plants in Norway, Sweden and Finland".
On the Finnish road marking market contractors are generally working within so called term maintenance contracts with the responsibility to maintain the road marking quality and function during several years. The acquisition includes several term maintenance contracts with the Finnish Road Administration between the years 2008-2022. The total value of the contract portfolio amounts to approx. SKr 450 million.
The Destia road marking operations will be acquired by year end 2008.
Göteborg, Sweden November 13, 2008 AB GEVEKO (plc)
For further information Mr Hans Ljungkvist, CEO and Managing Director Phone: +46 31 172945, Mobile: 0705 371110
Geveko is Europe's leading road marking company with a strong brand name on most markets in Europe. Products and services of the highest quality help to create safer conditions on the roads and consequently support Geveko's mission of being a serious player in improving road safety.
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