Lakers Group: Acquisition of Norsk Pumpeservice and successful bond tap issue under the existing sustainability-linked bond framework.
Lakers Group AB (publ) (“Lakers Group”, the “Company”), a leading and independent aftermarket service provider of water and wastewater pumps, has signed a share purchase agreement to acquire the leading Norwegian service and aftermarket provider Norsk Pumpeservice AS (“NPS”). The acquisition is expected to close in August. The transaction is subject to customary competition filing.
Norsk Pumpeservice was founded in 1984 in Fetsund (outside Oslo) and originally focused on ensuring freshwater access outside of reach of public infrastructure, through supplying water drilling companies with water pumps and water drilling consumables. NPS has since the early 2010’s expanded into wider water equipment consumables market, taking a #1 position also in the fast-growing foundation drilling segment. Since the early 2000’s, NPS has delivered impressive growth rates, averaging 11% per year. The company currently has 17 employees contributing to the NOK 165 million revenue and 17% EBITDA-margin in 2020.
“Norsk Pumpeservice has a track record of strong growth with high customer loyalty and satisfaction. We are now enthusiastic to continue our positive development together with customers, employees and suppliers as part of the Lakers Group”, says Odne Phil, MD of Norsk Pumpeservice
The NPS acquisition marks an important milestone on the Lakers journey and strengthens Lakers’ Norwegian platform significantly. The acquisition is of high strategic importance; solidifying Lakers’ leading position in Norway, expanding the product offering and widening the M&A universe. NPS brings an attractive track record of profitable growth, a leading position within in its core markets and an experienced management team who look forward to continue NPS’ successful journey as part of the Lakers Group.
“We have following NPS for a long time and we are thrilled to have them on board as part of Lakers Group. NPS will increase our clean water business in Norway, and we will now also be able to offer water treatment capability in the Norwegian market. We are impressed by the organization and their customer focus and look forward to continue to develop NPS as part of Lakers Group”, says Carl-Johan Callenholm, CEO Lakers Group.
To part-finance the acquisition Lakers has successfully completed a NOK 200 million tap issue under the existing senior secured sustainability-linked bond framework with maturity in 2025. Following the bond tap issue, the outstanding amount will be NOK 950 million with NOK 1,050 million in remaining framework. The transaction received strong interest from tier 1 institutional credit investors and was significantly oversubscribed. The bond tap issue was priced at 100.75% of par.
Arctic Securities acted as global coordinator and joint lead manager, Pareto Securities, and Swedbank acted as joint lead managers in connection with the placement of the bond tap issue.