Lassila & Tikanoja plc
Inside information
25 October 2023 at 7:30 p.m.
Inside information: Lassila & Tikanoja plc has completed a strategy review and decided to focus on its circular economy businesses, in addition the company initiates an evaluation of strategic alternatives for Facility Services Finland and Facility Services Sweden
The Board of Director's of Lassila & Tikanoja has today completed a review of the company's strategy. According to the revised strategy, Environmental Services and Industrial Services divisions will seek growth especially by focusing on business opportunities related to circular economy of materials. The company seeks to grow in these areas organically, potentially supported by selective acquisitions.
"Mitigating climate change and biodiversity loss requires actions supporting circular economy from the society and all companies, and this offers opportunities for L&T. We need new solutions to improve the recycling rate and increase the material value of waste and restore contaminated land areas." says Eero Hautaniemi, CEO of Lassila & Tikanoja.
The revised strategy will be presented in more detail in L&T's Capital Markets Day to be held on 23 November 2023.
Evaluation of strategic alternatives for Facility Services Finland and Facility Services Sweden will be started
Following the strategy review, the Board of Directors has today decided to initiate an evaluation of strategic alternatives for Facility Services Finland and Facility Services Sweden divisions as a part of the development of L&T's business portfolio. All potential options will be considered, including a potential sale of the divisions.
Facility Services Finland develops the value its customers' properties with cleaning, property management and technical services. Facility Services Sweden offers cleaning and technical services to its customers. Net sales in Facility services Finland were EUR 256 million and in Facility services Sweden EUR 140 million in 2022.
"L&T's facility services divisions in Finland and Sweden are significant size businesses in terms of net sales with strong market positions in sizeable markets. Now is a good time to evaluate the next step to develop the businesses and create value.", says Hautaniemi.
The evaluation will not have any immediate impact on Facility Services' daily business operations or customer work.
Lassila & Tikanoja expects to conclude the strategic assessment by the end of year 2024. There is no certainty whether the assessment will result in any transactions and Lassila & Tikanoja will provide updates on the progress of the evaluation if, and when, appropriate.
LASSILA & TIKANOJA PLC
Board of Directors
Eero Hautaniemi
President and CEO
For additional information, please contact:
Eero Hautaniemi, President and CEO, tel. +358 10 636 2810
Lassila & Tikanoja is a service company that is putting the circular economy into practice. Together with our customers, we keep materials, manufacturing sites and properties in productive use for as long as possible and we enhance the use of raw materials and energy. This is to create more value with the circular economy for our customers, personnel and society in a broader sense. Achieving this also means growth in value for our shareholders. Our objective is to continuously grow our actions' carbon handprint, our positive effect on the climate. We assume our social responsibility by looking after the work ability of our personnel as well as offering jobs to those who are struggling to find employment, for example. With operations in Finland and Sweden, L&T employs approximately 8,300 people. Net sales in 2022 amounted to EUR 844.1 million. L&T is listed on Nasdaq Helsinki.
Distribution:
Nasdaq Helsinki
Major media
www.lt.fi/en
