SKEL fjárfestingafélag hf.: Styrkás finalizes the purchase of Stólpi Gámar ehf. and affiliated companies.

Reference is made to the announcement dated 31 January 2024, regarding Styrkás hf., a company 69.64% owned by SKEL fjárfestingafélag hf., signing a purchase agreement to acquire 100% of the shares in six subsidiaries of Máttarstólpi ehf. The purchase agreement was subject to the approval of the Competition Authority.

The transaction was finalized today with payment of purchase price and delivering of shares in the following companies:

- Stólpi Gámar ehf., id. 460121-1590, Klettagörðum 5, 104 Reykjavík:
- Stólpi Smiðja ehf., id. 460121-1750, Klettagörðum 5, 104 Reykjavík;
- Klettskjól ehf., id. 460121-0510, Klettagörðum 5, 104 Reykjavík;
- Stólpi ehf., 460121-0430, Klettagörðum 5, 104 Reykjavík;
- Tjónaþjónustan ehf., id. 460121-1670, Klettagörðum 5, 104 Reykjavík;
- Alkul ehf., id. 491020-0830, Haukdælabraut 48, 113 Reykjavík.

collectively referred to as "the sold companies". These companies will continue to be operated on a consolidated basis.

The Enterprise value of the sold companies is ISK 3,549 million. After adjusting for net interest-bearing liabilities and net current assets, the final purchase price is ISK 2,955 million. The purchase price was paid 55% in cash and the remaining 45% was paid with 1,113,413,668 newly issued shares in Styrkás. As a result, Máttarstólpi now holds an 8.7% stake in Styrkás.

The acquired companies had a combined profit of around ISK 663 million before depreciation, taxes, and capital items (EBITDA without the effects of IFRS 16) in 2023, according to the draft annual accounts. After the purchase, Styrkás Group's estimated profit before depreciation, taxes, and capital items (EBITDA) in 2024 is about ISK 2.7 billion.

About Styrkás

Following the acquisition Styrkás is 63,4% owned by SKEL fjárfestingafélag hf. and 27% by Horn IV slhf., a private equity fund managed by Landsbréf hf. Styrkás’s corporate strategy is to build on the strong foundations of the group with internal and external growth in the fields of energy and chemical products, industrial solutions, equipment management, waste and recycling services, heavy machinery and equipment management. Today, Styrkás consists of Skeljungur, Klettur and Stólpi all  leading companies in their fields.

The objective of Styrkás shareholders is to list the company on the Icelandic stock market before the end of 2027.

Styrkás' advisors in the process are Íslandsbanki and BBA // Fjeldco and Máttarstólpa's advisors are &Pálsson and Landslög.

For further information, Ásmundur Tryggvason, CEO of Styrkás, asmundur@styrkas.is