January 19, 2021

Lindab comments market intelligence about on-going divestment of business unit

It has come to Lindab's attention that there is market intelligence about an active bidding process to divest business area Building Systems.

In 2017, Lindab initiated a strategic review of Building Systems. It resulted in an action program to increase profitability. Since then, Building Systems has greatly improved profitability. Lindab has noted a growing external interest in the business and has received unsolicited indicative bids that are being evaluated. Lindab has, however, not initiated a formal bidding process for Building Systems. No financial advisor has been appointed and there are no formal deadlines for submitting bids.

“We are open to the fact that Building Systems may change owner in the future, but as long as Lindab is the owner, our commitment to develop the business remains strong. Building Systems has over the past three years significantly improved profitability, they have an attractive product portfolio and a competent management team. In 2020, sales were affected by the uncertainty related to covid-19, but Building Systems has quickly adapted and has thus been able to show good profitability. That is probably why we have received unsolicited indicative bids”, says Ola Ringdahl, President and CEO of Lindab.

Building Systems is one of three business areas within Lindab. During the first nine months of 2020, the business area had sales of SEK 714 million and reported an operating margin of 4.6 percent.