Sweden’s AF Group acquires Swiss Colenco

AF Group, a Sweden-based consultant in industrial processes, infrastructure, and information technology, has acquired Swiss energy consulting company Colenco AG, which has a major portfolio in hydropower.

AF Group said August 30 it paid about 300 million kronor (US43.5 million) for 100 percent of the shares of Colenco, plus additional payments to a maximum of 100 million kronor (US$14.5 million) to be made based on profits over the next three years.

AF said Colenco brings into the deal about 80 million kronor (US$11.6 million) in cash and cash equivalents and premises valued at 100 million kronor (US$14.5 million). AF said, based on an additional purchase price of about 50 million kronor (US$7.2 million), intangible assets are estimated to total 190 million kronor (US$27.5 million), of which 180 million kronor (US$26 million) is classified as good will.

The Swedish group said it plans to consolidate Colenco into AF’s Process Division beginning in the third quarter of 2007.

�The acquisition reflects AF’s international strategy of meeting rapidly expanding demand on the international energy market,� AF said. �The market within the energy sector is strong in both Europe and Asia as a result of the fact that major investment programs extending over several years have been launched in most countries.�

Headquartered in Baden, Switzerland, Colenco has 250 employees with offices in 11 countries. It currently is engaged in projects in more than 40 countries.

A spin-off of Swiss utility Aare-Tessin AG fur Elektrizitat (Atel) in 2001, Colenco’s main areas of activity are hydroelectric and nuclear power, electrical networks, and conventional power plants. Its 2006 sales exceeded US$39 million, with a profit margin of 7.4 percent. In the first six months of 2007, sales exceeded US$23 million, with a profit margin of 10.7 percent.

AF said the acquisition reinforces its position in Europe, including Russia and the Baltic region, as well as in Southeast Asia, and southern Asia.

AF Group, which has more than 3,500 employees working globally, focuses on technical consulting in the areas of industrial processes, infrastructure projects, information technology, and testing and inspection.

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