Merko Ehitus subsidiary acquires majority holding in Norwegian construction company

Merko Ehitus subsidiary Merko Investments AS has acquired a 56% holding in Norwegian construction company Peritus Entreprenør AS in order to provide construction services on the Norwegian market.

On 7 March 2016, Merko Ehitus subsidiary Merko Investments AS entered into agreements with Norway’s SDV Golding AS and Aucon AS to acquire a 56% stake in Peritus Entreprenør AS. The Norway-registered Merko Investments AS is 100% owned by AS Merko Ehitus.

Peritus Entreprenør AS (www.peritus-entreprenor.no) is a Norwegian construction firm providing general construction services. It was founded in 2014 and its turnover in 2015 was approx. EUR 7 million. The company’s former majority owners will continue to have a hand in the day-to-day management of the company and will retain a 44% holding. Upon mutual agreement, the price and other conditions of the transaction will not be disclosed.

“The growth opportunities on the Baltic construction market are limited due to the small size and fragmentation of the market, modest economic growth and lower volume and sporadic availability of government contracts. As a result, the Merko Group has looked into ways of offering construction services outside the Baltics,” said AS Merko Ehitus CEO 15. “Investments continue to be made in Norway into infrastructure and buildings, including residential real estate. In addition, the values on the Norwegian construction market are suitable for us: customers focus on high construction quality instead of, say, the cheapest solutions. In addition, Estonian manufacturers of timber homes have gained renown on the Norwegian construction market and there is thus a certain trust in Estonian quality.”

Merko Ehitus decided to acquire a controlling holding in a Norwegian construction company as Merko sees itself as a regional corporation with strong companies on every market where we operate. “Prime contracting, project management and real estate development are a local business and require a local team. To gain the trust of local customers, one has to be a dedicated partner, learn local construction standards and culture and have a long-term presence, not just on a one-time project. Although Peritus Entreprenør AS is not a large company, the owners have managed to become quite successful in a short space of time. Moreover, we have the same kinds of interests as the former majority owners when it comes to cooperation and corporate goals,” said Trink.