Norwegian Moelven announced that the company will acquire DLH's Swedish operations. Moelven thinks that the acquisition will bring strong growth for Moelven Wood in Sweden. Specifically, it provides a local presence in Skåne and the southern parts of Sweden.
Mikael Axelsson, CEO of Moelven Wood AB, says that the acquisition also provides a strong platform for the further expansion of a cost effective distribution arrangement both for the building materials trade and industrial customers.
''We get the possibility to take over the customer and supplier relationships along with their associated revenue as well as acquiring access to a large and very efficient warehouse that is centrally located in the middle of Skåne. It gives us a fantastic opportunity to continue our growth journey,'' says Axelsson.
Geographical presence in the south of Sweden
Axelsson says that Moelven's geographical presence in southern Sweden will now be strengthened considerably.
''We will, of course, firstly ensure that we preserve and develop the current values of the existing customer relationships in southern Sweden. But we are already planning to broaden our product range, both in terms of self-produced products and products from external suppliers. In the longer term, we will also be able to offer our customers in southern Sweden a unique package of wood-based construction materials and interior fitting materials from the same supplier,'' he says.
Acquisition of assets and liabilities
The CEO of DLH Sweden AB, Michael Skovbo Bühlmann, says the takeover is being made through a so-called acquisition of assets and liabilities.
The acquisition mainly consists of stock, property - comprising warehouse buildings totalling 23,000 m 2 and office space of 600 m2 as well as the equipment belonging to the business. The acquisition by Moelven means that DLH will now cease its operations in Sweden but we will maintain a few customer contracts, which will be coordinated with the operations in Denmark, says Michael Skovbo Bühlmann.
Operations continue in Hässleholm
Moelven Wood AB will consequently continue to conduct and develop the operations in Hässleholm. This means that seven people currently working with stock management at the facility in Hässleholm will be offered employment with Moelven Wood AB.
On the other hand, all other functions such as marketing, sales, finance and administration will be brought into Moelven's existing organisation, which means that from the DLH employees, there will be an excess of 13 persons, says Mikael Axelsson.
Moelven Wood AB takes over the business on November 21st, 2016.
The sale of the Swedish operations unit follows the January 2014 decision, when DLH's General Assembly decided to dispose of all the Group's companies and operations. Since then, a number of the Group's assets, businesses and companies were sold or closed.
