Ellevio has signed an agreement with the energy company Kraftringen to acquire the electricity network operations in Nynäshamn (Nynäshamn Energi AB). As a result, approximately 16,000 customers get a new network owner.
The electricity network in Nynäshamn/Ösmo borders Ellevio’s regional network in Stockholm and further strengthens Ellevio’s already strong position in the Greater Stockholm area. Ellevio will continue to provide customers in Nynäshamn with reliable electricity distribution and services.
“We are pleased to announce the acquisition of Nynäshamn Energi. This is also the first step in our ambitions for growth,” said Johan Lindehag, CEO of Ellevio.
“We see natural synergies with our network in Stockholm. In the short term, there will be no changes for the customers. In the longer run, it means modernization and development of the network to meet growing demand, increased needs for flexibility and new prerequisites for sustainable electricity distribution,” said Johan Lindehag.
The deal is expected to be closed on 30 November, provided that the contractual conditions are met. The acquisition will take the form of a transfer of shares, whereby Ellevio purchases the shares in Nynäshamn Energi AB and takes over the total responsibility for the company and its 14 employees. The network fees in Nynäshamn are slightly higher than in Ellevio’s Stockholm network, which is at the average level for the country’s network prices.
Sylvia Michel, CEO of Kraftringen, commented:
“Our goal was to find the best buyer for Nynäshamn Energy, and we see that we’ve succeeded. Ellevio is one of the country's largest utility companies, with electricity distribution as its core business. Our assessment is that they are best placed to run the business in the long term and with a local focus. We have also considered Ellevio’s long-term plans for the employees and not least the owner's sustainability work.”
Ellevio is Sweden’s largest independent electricity network company with approximately 915,000 customers. In autumn 2015, the company launched a major long-term investment program to meet future demands and expectations on the network. Between now and 2019, Ellevio plans to invest more than SEK 9 billion in a more modern, weather-proof network and, from a capacity point of view, a stronger network for its customers.
Large parts of the Swedish network were built in the 1960s and 70s. The network still works well in most cases, although certain stretches are gradually reaching their retirement age, meaning that the network owners, often municipalities or smaller economic associations, are faced with extensive investment needs. The acquisition of Nynäshamn Energi is a natural is a natural consequence of Ellevio’s ambition to grow.
“We are open to additional acquisitions and partnerships. The network of the future will require investments that we believe may be challenging for many local companies. Small and large scale electricity producers are to be connected to a future electricity market where players can be both producers and consumers, while demands on reliability will increase in pace with increased digitization of society and the greater uptake of electric vehicles in the transport sector. At Ellevio, we are independent, well-capitalised specialists in electricity networks, and we are ready to make the necessary investments,” Johan Lindehag concluded.
For more information, please contact:
Jonatan Björck, Ellevio Press Officer, email email@example.com, tel +46 72 56 15 416