Lassila & Tikanoja plc
L&T divests its Latvian business operations
Lassila & Tikanoja and Bioinvest SIA have signed an agreement on the sale of L&T’s business operations in Latvia to Bioinvest SIA.
The total net sales of the divested business operations amount to about EUR 16 million, most of which is allocated to the Environmental Services division. As a result of the divestment, about 950 employees will transfer to Bioinvest’s payroll. The transaction is expected to be finalised in March 2014.
The parties have agreed that the transaction price will not be made public. In accordance with IFRS accounting practices, Lassila & Tikanoja will recognise a capital gain of approximately EUR 1-2 million on the divestment in its first-quarter interim report for 2014.
“The divestment of Latvian business operations is one of the steps we are taking to streamline L&T’s business portfolio and implement our strategy of profitable growth. The Latvian market for environmental services is undergoing a great transition, and thus it would not have been the right time to invest there. The Environmental Services division is the market leader in Finland – and we will now focus on further consolidating our position,” says Pekka Ojanpää, President and CEO of Lassila & Tikanoja.
LASSILA & TIKANOJA PLC
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