Lassila & Tikanoja plc
Inside information
13 December at 8.00 a.m.
Inside information: Lassila & Tikanoja initiates the planning to separate its circular economy and facility services businesses and launches a programme aiming for improved performance
The Board of Directors of Lassila & Tikanoja plc has decided to initiate the planning of the possible separation of its circular economy businesses Environmental and Industrial Services and facility services businesses into two independent listed companies. The plan is to separate the circular economy businesses into a newly listed company through a partial demerger of Lassila & Tikanoja plc.
According to the Board of Directors' preliminary assessment, the separation of the circular economy and facility services businesses could increase shareholder value by enabling both businesses to pursue their own strategies and growth opportunities more effectively.
The Board of Directors of Lassila & Tikanoja estimates that planning the possible partial demerger will take approximately 12 months. The planning will start immediately. The possible partial demerger and listing of the circular economy businesses requires the approval of the Extraordinary General Meeting of Lassila & Tikanoja plc.
"The Board of Directors of Lassila & Tikanoja is convinced that the separation of the circular economy and facility services businesses would enable increasing long-term shareholder value by offering both businesses better preconditions and focus to implement their strategies," says Jukka Leinonen, Chairman of the Board of Directors of Lassila & Tikanoja.
Lassila & Tikanoja launches an efficiency programme aiming for improved performance
Lassila & Tikanoja renewed its operating model in 2024. Continuing the operating model work, Lassila & Tikanoja will launch an efficiency programme aiming for improved performance at the beginning of 2025, encompassing both the circular economy and facility services businesses. The efficiency programme aims for an annual performance improvement of at least EUR 8 million by the end of 2026 compared to the 2023 level, including the impact on the annual cost level of having two separate listed companies.
"The efficiency programme focuses among other things on simplifying processes, improving the efficiency of direct and indirect procurement, and the efficiency in the use of fleet and equipment, among other things. The programme objectives are based on the preliminary plans of the company's management. No targets or measures related to possible restructuring measures have been decided." says Eero Hautaniemi, President and CEO of Lassila & Tikanoja.
The reportable segments will change beginning of year 2025
As of 1 January 2025, Lassila & Tikanoja will have three reportable segments: Circular Economy Business, consisting of current Environmental Services and Industrial Services divisions, Facility Services Finland, and Facility Services Sweden. The change in reporting structure will be reflected in Lassila & Tikanoja's financial reporting starting from Q1 2025. Adjusted comparison figures based on the new segment structure will be published before the first interim report for 2025.
Additional information during the process
Lassila & Tikanoja does not expect the planned separation to cause any material impacts or changes to the operations of the divisions.
The schedule of the possible transaction may change. The planned measures are subject to customary local laws and regulations and works council consultations. Should the Board of Directors decide to propose a partial demerger to separate the circular economy businesses from Lassila & Tikanoja, the proposal requires the approval of Lassila & Tikanoja's General Meeting. More information on the possible corporate transaction and the related evaluation will be provided during the process.
LASSILA & TIKANOJA PLC
Board of Directors
Eero Hautaniemi
President and CEO
For additional information:
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 8,160 people. Net sales in 2023 amounted to EUR 802.1 million. L&T is listed on Nasdaq Helsinki.
Distribution:
Nasdaq Helsinki
Major media
www.lt.fi/en/
