Ovako has signed an agreement with SSAB to acquire steel and metals distributor Tibnor Oy in Finland. The deal has been approved by the European Commission and will now be examined by competition authorities in Finland and Estonia for final approval. The acquisition is expected to have a slightly positive impact on Ovako’s operating profit and a slightly negative impact on cash flows for 2015.
The acquisition of Tibnor Oy in Finland is part of Ovako’s efforts to enhance its presence and collaboration with customers in new and existing markets. “Tibnor Oy is a successful company with extensive experience as a distributor for companies including Ovako in the Finnish market. The acquisition of Tibnor Oy means that Ovako can broaden our customer offering in the Finnish market and enhance our contact with end customers regarding all of Ovako’s products”, says Tom Erixon, president and CEO of Ovako.
Tibnor Oy purchases, warehouses, processes and distributes steel and other metals for the engineering, process and construction industries. The company has approximately 50 employees and sales amounted to EUR 66.6M in 2013. Ovako’s acquisition of Tibnor Oy has been approved by the European Commission and the next step is for the deal to be examined by competition authorities in Finland and Estonia for final approval.
