Höganäs Borgestad Holding AB (“Höganäs Borgestad”), a subsidiary of Borgestad ASA (“Borgestad”), has on 17 June 2025 entered into an agreement to acquire 100 percent of the shares in Emcotech AB (“Emcotech”), a Sweden-based company specializing in industrial flue gas cleaning.
ABOUT EMCOTECH
Emcotech was founded in 1995 and has established itself as a trusted partner to industries such as pulp and paper, energy production, and heavy manufacturing. The company specializes in delivering systems that capture and neutralize pollutants, ensuring cleaner air and supporting more sustainable industrial processes.
Emcotech’s solutions enable clients to maintain high operational standards while minimizing environmental impact. In addition to system design and implementation, the company offers high-quality spare parts with fast delivery times to minimize operational downtime.
In 2024, Emcotech delivered a revenue of SEK 45.4 million and an EBITDA of SEK 6.4 million.
STRATEGIC RATIONALE
The integration of Emcotech into the group is driven by Höganäs Borgestad Energi & Ugnsteknik AB’s (“HBEU”) dual setup, which combines industrial mechanics and filter services. As part of the same group, the intention is for Emcotech and HBEU to establish a stronger position in the industrial filter market.
Immediate synergies across the companies include the sharing of technical expertise, resources, and equipment, improving both sales and operational efficiency. With each company already present at various customer sites – either individually or jointly – there are clear opportunities to broaden service offerings and increase market share.
“We are very pleased to welcome Emcotech into our group. This acquisition strengthens our position in the niche of flue gas cleaning – a field that is critical for many of our customers and increasingly important in the transition to more sustainable industrial processes.
While this is not our largest acquisition, it brings significant strategic value by adding highly competent personnel, as well as strong customer and supplier relationships. We look forward to building on Emcotech’s solid foundation and continuing to grow together,” says Bendik Persch Andersen, CEO of Höganäs Borgestad.
TRANSACTION TERMS
The transaction will be settled with a payment of SEK 10.5 million for the shares at closing, subject to adjustment for any deviations from historically seasonal working capital levels and net debt as of closing. In addition, a contingent performance-based earn-out, capped at SEK 10 million, will be payable 18 months after closing, subject to fulfilment of the relevant conditions.
Closing of the transaction is expected by the end of June 2025, subject to certain customary closing conditions.
The transaction will be financed through loan commitments from Nordea, consisting of a mortgage facility of SEK 9 million and an overdraft facility of SEK 10 million. The terms and conditions for the new loan commitments will essentially correspond to those of the existing loan agreements with Nordea, as communicated in Borgestad's stock exchange announcement on 3 June 2025.
The contact person is Pål Feen Larsen, CEO Borgestad ASA, +47 488 45 333
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
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About Borgestad| www.borgestad.no
Borgestad ASA (OSE:BOR) is an investment company focused on real estate and industry. The key investments include Agora Bytom shopping center and the leading refractory manufacturer Höganäs Borgestad.
About Höganäs Borgestad | www.hoganasborgestad.com
Höganäs Borgestad develops, manufactures and delivers refractory products, installations and turnkey solutions that enhance the productivity and competitiveness of industrial customers. The aim is to contribute to the customers' profitability by providing high-value refractory solutions to their challenges. Today, the company is a leading supplier in the refractory market of the Nordic countries.