Acquisition positions Endúr as a dominant player in Norwegian construction and aquaculture infrastructure.
Endúr ASA, a Norwegian industrial group specializing in marine infrastructure, construction, and aquaculture services, has announced an acquisition deal that will double its revenue and significantly expand its footprint in the Norwegian construction and aquaculture industries.
The company has entered agreements to acquire Total Betong, Igang Totalentreprenør, and Habto Holding, including its subsidiaries Hab Construction and Propoint Survey, in a transaction valued at NOK 1.06 billion ($94 million). The deal is being financed through a combination of share issuance, bank debt, and an equity raise underwritten by Kverva Finans, the investment firm owned by billionaire Gustav Witzøe.
Strategic Rationale and Market Positioning
The acquired companies are well-established players in Norwegian construction, specializing in infrastructure and land-based aquaculture projects. The acquisition will add NOK 2.75 billion ($244 million) in revenue, bringing Endúr’s total projected revenue to NOK 5.54 billion ($493 million) for 2024, based on unaudited pro forma financials.
Additionally, the deal adds a significant backlog of NOK 6 billion ($534 million), raising Endúr’s total secured backlog to NOK 9.3 billion ($828 million), ensuring continued revenue growth in the coming years.
“This is a major step forward for Endúr,” said CEO Jeppe Raaholt. “The acquired companies fit neatly into our operational model and provide strong synergies in construction and aquaculture. This expansion strengthens our revenue base and enhances our ability to deliver complex projects.”
Total Betong is a turnkey contractor with a focus on large-scale infrastructure and land-based aquaculture, employing approximately 140 people. Igang Totalentreprenør, based in Klepp, specializes in commercial and residential construction. Hab Construction, part of Habto Holding, focuses on water, sewage, and transportation infrastructure, while Propoint Survey provides surveying and digital mapping services to the civil engineering sector.
Financing and Equity Raise
Endúr will pay NOK 1.02 billion ($91 million) to acquire the firms, valuing them at an enterprise value (EV) of NOK 1.057 billion ($94 million), excluding lease liabilities. The transaction will be funded as follows:
- NOK 550 million ($49 million) in shares issued to the sellers at NOK 75 per share, with a lock-up period spanning three years.
- NOK 470 million ($42 million) in cash, financed through a NOK 350 million ($31 million) bank facility and a NOK 300 million ($27 million) equity raise.
- Kverva Finans has committed to purchasing at least NOK 250 million ($22 million) in shares as part of the equity raise at NOK 72 per share.
“This is a long-term investment for Kverva,” said Børge Klungerbo, Investment Director at Kverva. “Endúr has strong market positioning, and we see significant value creation opportunities in this sector.”
Additionally, Kverva will acquire NOK 50 million ($4 million) worth of existing shares from Artec Holding and Bever Holding, reinforcing its position as a key stakeholder in Endúr. In line with this investment, Endúr’s nomination committee has proposed Klungerbo for a seat on the board.
Regulatory Approvals and Next Steps
The deal is subject to approval from the Norwegian Competition Authority and an extraordinary general meeting (EGM) for the issuance of consideration shares. Shareholders representing 39.35% of Endúr’s voting rights have already committed to supporting the share issuance.
Endúr has also announced plans for an Oslo Stock Exchange listing of the new shares upon approval of a prospectus by the Financial Supervisory Authority of Norway. The transaction is expected to close by the end of Q1 2025.
