Enersense agrees to sell the entire share capital of Värväämö Oy to Citywork

Enersense International Plc
Insider information, 6 May 2021 at 9.00 am

With a deed of sale signed today, a provider of zero-emission energy solutions, Enersense International Plc has agreed to sell the entire share capital of its subsidiary Värväämö Oy, which offers personnel services for the construction industry, to Citywork Oy.  Founded in 2006, Citywork is a member of the Celebris Group and provides personnel services in the whole of Finland. Upon completion of the transaction, Citywork is planning to make Värväämö part of its support and personnel services business for the construction industry. The acquisition increases the resources of this business significantly and it will start using the Värväämö brand.

The completion of the transaction is subject to the fulfilment of the terms and conditions of the buyer’s funder, agreed in the deed of sale.

 The transaction is expected to be completed by the end of June 2021.

”In accordance with our new strategy, we will focus on creating and developing zero-emission energy solutions. Subsequently, we could no longer see how Värväämö and its personnel services for the construction industry could support our core business.  We believe that the new owner will enable Värväämö to develop into an even stronger player in its field,” says Enersense’s CEO Jussi Holopainen.  

The minimum price for all the shares will be EUR 2,000,000 and the maximum EUR 3,000,000, and the price consists of a basic purchase price of EUR 500,000, adjusted in accordance with the terms of the deed of sale, and an additional purchase price linked to the EBITDA of Citywork’s support and personnel services business for the construction industry in 2022 and 2023. The achievement of the maximum purchase price will also be affected by the turnover of Citywork’s construction support and personnel services business and Värväämö in the financial year 2021.

The purchase price will be paid in cash. When completed, the transaction will have no effect on Enersense’s financial guidance or medium-term financial targets.  

Värväämö Oy has around 200 employees.  Värväämö specialises in employment services for the construction industry. In 2020, its turnover was EUR 13.8 million (EUR 16.5 million in 2019). In 2020, the company’s EBITDA was approximately EUR -0.5 million (EUR 0.05 million in 2019) and its balance sheet total amounted to about EUR 2.2 million (EUR 2.1 million in 2019).Enersense will not completely divest its personnel leasing services as the company will retain both know-how and an ability to scale resources internally. Upon completion of the transaction, the Staff Leasing business unit will be closed down and, going forward, the Enersense Group will have four business areas: Smart Industry, Power, Connectivity and International Operations.  The resourcing business of the Smart Industry business unit will remain unchanged.

”The transaction will not affect Enersense’s ability to scale resources internally, which is very important to us,” says Holopainen.