Inside information: Uponor to acquire the remaining 44.7% stake in its subsidiary Uponor Infra Oy from KWH Group

Uponor Corporation                Inside Information                 15 May 2023 at 13.00 EEST

Inside information: Uponor to acquire the remaining 44.7% stake in its subsidiary Uponor Infra Oy from KWH Group

Uponor has today signed an agreement to acquire the remaining 44.7% stake in Uponor Infra Oy from KWH Group. The acquisition price is approximately €60 million and Uponor will finance the acquisition with cash and new debt. Following this transaction Uponor will increase its shareholding in Uponor Infra Oy from 55.3% to 100%. The transaction will be closed after receipt of relevant authority approvals, with the closing expected to take place in the third quarter of 2023.

Uponor has fully consolidated Uponor Infra in its consolidated financial statements since February 2013, and therefore the acquisition will not have an impact on Uponor's sales or operating income. However, the transaction will have a positive value-creating impact, benefitting Uponor’s shareholders through increased earnings per share.

“Uponor Infra contributes with stability in the Uponor Group’s business portfolio. The infrastructure and industry sectors that Uponor Infra serves are typically less cyclical than the residential and commercial construction markets in which our Building Solutions- divisions operate. Uponor Infra benefits from the strong Uponor brand and is well-positioned to benefit from the continued investments into sustainable infrastructure. Uponor Infra has a positive growth outlook and opportunities for further margin improvement. There are strong megatrends that drive the long-term demand for Uponor Infra’s solutions. With 100% ownership, we will be able to fully execute our profitable growth strategy and capture all benefits of our investments in the Uponor Infra business,” says Michael Rauterkus, President and CEO of Uponor Corporation.

“Together, we have executed the business plan that we made when the joint venture was established in 2013. As our long-term partnership comes to an end, I would like to express our gratitude to Uponor for the fruitful collaboration. We wish Uponor continued success and growth in the years to come,” says Kjell Antus, President and CEO of KWH Group.

“We have had a long journey together with KWH Group. The Uponor Infra joint venture was established with the aim of creating a Nordic leader in infrastructure piping systems. We have completed this transformation and achieved the targets set for the joint venture. Footprint restructuring and divestments of non-core units combined with a focus on the profitable core and solution sales, as well as continued productivity enhancements have delivered strong margin improvement creating significant shareholder value. We are thankful for our common journey with KWH Group and now look forward to embarking on a new journey as sole owners of Uponor Infra to maximise the opportunities of the business,” says Sebastian Bondestam, President of Uponor Infra.

Further information:
Franciska Janzon
Senior Vice President, Corporate Communications and IR
Uponor Corporation
Tel. +358 (0)20 129 2821

Uponor Infra in brief
Uponor Infra is the Nordic leader in selected infrastructure product and service categories. Uponor Infra serves the Baltic Sea area with sewer and storm, pressure pipe systems, design solutions and project services for municipalities, utilities and industry. The division has production in Finland, Sweden, and Poland.

Uponor in brief
Uponor is a leading global provider of solutions that efficiently and effectively move water through cities, buildings, and homes. We help customers in residential and commercial construction, municipalities, and utilities, be more productive – and continuously find new ways to conserve, manage and provide water responsibly, unlocking its potential to provide comfort, health, and efficiency. Our safe drinking water, energy-efficient radiant heating and cooling systems, and reliable infrastructure solutions are sold in more than 80 countries. Uponor employs about 3,900 professionals in 26 countries in Europe and North America. In 2022, the company’s net sales totalled approximately €1.4 billion. Uponor Corporation is based in Finland and listed on Nasdaq Helsinki. www.uponorgroup.com