Asphalt producer acquires factory - paving the way for optimized production
Peab Asfalt A/S acquires Super Asfalt's factory at Prøvestenen in Copenhagen.
With the new acquisition, Peab Asfalt occupies a modern, five-year-old production facility directly on the waterfront. This provides logistical advantages and reduces Peab Asfalt'sCO2 emissions.
"The acquisition of the factory at Prøvestenen means that we maintain production capacity and continue to provide our customers with the best service and quality," says Claus Terkildsen, CEO of Peab Asfalt.
Business Brokers Claus Bruun and John Klindt assisted Peab Asfalt in the acquisition process.
Factory acquisition via business broker in less than six months
Since 1929, Peab Asfalt has produced asphalt for the Danish market at a factory near Kastrup, but the location close to residential areas was subject to restrictions on when the plant could operate. In addition, the site was put up for sale. Therefore, according to CEO Claus Terkilsen, the time was right to move production.
The management of Peab Asfalt Business Broker investigate the possibilities of purchasing an asphalt plant that could meet increasing capacity requirements and the growing demand for increased recycling of old asphalt in the production of new pavement.
"Peab was interested in buying Super Asfalt's plant in advance, but wanted full anonymity in the initial stages to avoid creating unnecessary unrest in the relatively small industry. Therefore, we contacted the owners of Super Asfalt on behalf of Peab and conducted anonymous negotiations until the signing of the Letter of Intent, LOI", says John Klindt.
When Business Broker them, the owners of Super Asfalt were not actively seeking to sell, but interest in selling the company was quickly aroused.
"Both the buyer and seller contributed to a constructive collaboration and negotiation process, which resulted in the ownership transfer being completed in less than six months," says Claus Bruun .
Concrete benefits of using a business broker for acquisitions
The new owner of the asphalt factory at Prøvestenen is extremely satisfied with Business Brokers .
"I don't think we would have achieved our goal without Business Broker. For example, we would not have been able to establish the same sober and professional framework for the negotiations ourselves – that was a prerequisite for the change of ownership," says Claus Terkildsen.
He points out another advantage of working with external brokers in the acquisition process.
"With Business Broker the coordinator, we were able to fulfill our wish to hold the initial discussions with Super Asfalt anonymously," emphasizes the director.
100 percent buyer's advisor in the acquisition process
Business Broker the buyer's advisor throughout the entire acquisition process and took on the role of project manager. More specifically, advisors John Klindt and Claus Bruun assisted Peab Asfalt in:
- Planning an acquisition strategy
- The initial, anonymous contact to Super Asfalt and subsequent dialog
- Valuation of Super Asfalt's factory
- Dissemination of indicative price
- The negotiation process in business acquisitions
- Coordination of due diligence and contract terms
Acquisitions offer prospects for efficient asphalt production
As Peab Asfalt's newly acquired factory is located on the quayside in the Port of Copenhagen, there is now a shorter route for raw materials for production, as Prøvestenen is already a hub for raw material transportation between Norway, Sweden and Denmark.
CEO Claus Terkildsen expects to produce between 70 and 100,000 tons of asphalt annually from the new plant.
PEAB ASFALT A/S
Peab Asfalt A/S
acquired Super Asfalt's facilities
Task: Managing the acquisition process from initial, anonymous contact with the seller to the final transfer of ownership.
Solution: An initial anonymous discussion with the owners of Super Asfalt A/S led to the purchase of their asphalt plant.
Result: By purchasing Super Asfalt's facility, Peab obtained a strong long-term solution in a strategic location in Copenhagen.
PEAB Asfalt A/S handles tasks within production and laying of asphalt and maintenance of roads and bridges.
Business Broker advised the buyer and managed negotiations and project management throughout the entire process.
Claus Terkildsen highlights three things:
- Business Brokers were very skilled at analyzing the company we wanted to acquire.
- As a customer, you can tell that Business Broker assisted many business owners. Claus Bruun and John Klindt have provided us with valuable insights into the acquisition process.
- Business Broker that we followed the path we set out on from the start and that there was momentum throughout the acquisition process.
