OREANDA-NEWS. Fortum has today finalised the acquisition of Ekokem Corporation with the four biggest owners, representing approximately 81% of the shares. Ekokem is a leading Nordic circular economy company specialised in material and waste recycling, final disposal solutions, soil remediation and environmental construction. Ekokem is headquartered in Riihim?ki, Finland and generated sales of EUR 258 million in 2015.

The debt and cash-free purchase price for 100% of the company will be approximately EUR 700 million. Based on Fortum’s estimate for 2016, the purchase price corresponds to approximately 11 times EBITDA.

Ekokem will be integrated as a business area into the City Solutions division and is consolidated into Fortum Group from the end of August 2016. Transaction costs (including transfer tax) of approximately EUR 12 million will be included in the result for the third quarter of 2016.

As of today, minority shareholders in Ekokem representing approximately 12% of the shares have approved the tender offer. Consequently, as Fortum’s total shareholding will exceed the 90% threshold Fortum will initiate a minority redemption process for the remaining shares directly after the end of the tender offer period (30 September 2016). Shareholders accepting the tender offer during the tender offer period will receive payments mostly in September 2016, whereas payments to the shareholders in the redemption process are estimated to take place in the spring of 2017.