26 Apr 2019
Furnes Jernstøperi AS, a Norwegian producer of manhole covers and related products, was sold to the Danish industrial group AVK.
Founded in 1958, Furnes Jernstøperi is a leading foundry for ductile-, and grey cast iron manhole covers, sold primarily in Scandinavia. Since 2016, the business has grown from a turnover of NOK 234 million (EUR 24 million) to NOK 310 million (EUR 32 million) in 2018, with solid financial results. Through 40 years of active ownership, the Øyhovden family has been instrumental in the development of the company.
With a turnover of NOK 7.2 billion (EUR 750 million), the AVK Group is a global market leader in valves and hydrants, which are part of vital infrastructures in the form of water and gas supply, waste water treatment and fire control, as well as a large number of industrial applications. AVK is family-owned and has its headquarters near Aarhus in Denmark. The Group has more than 100 production facilities and sales offices worldwide, and employs just over 4,000 people.
The Øyhovden family sought an industrial, long-term owner with a willingness to support the business going forward and is pleased to enter into the agreement with AVK Group, a solid international industrial player, with a well-recognized value perspective. The product range manufactured by Furnes will complement the AVK range of products, and the modern casting technology of Furnes will further add foundry competences to the AVK Group and generate synergies with the existing foundries in China and Australia.
Following the sale, Øyhovden Invest AS will continue to be an active owner in Hamjern AS, Core-tech AS, Container Gruppen Norge AS, Munck Cranes AS and Hamjern Eiendom AS. These companies are expected to have revenue of approximately NOK 420 million (EUR 44 million) in 2019, and currently have about 150 employees.
The transaction was advised by Clairfield International in Norway.
Deal team: Einar Haugstad, Lars Kristian Solberg, Malene von Krogh, Tord Brenden, and Anders Strand