Lemminkäinen - Company Announcement

Lemminkäinen divests its technical building services business to Are

LEMMINKÄINEN CORPORATION STOCK EXCHANGE RELEASE 14 MAY 2014 AT 1.15 P.M.

LEMMINKÄINEN DIVESTS ITS TECHNICAL BUILDING SERVICES BUSINESS TO ARE

Lemminkäinen Corporation and Are Oy, a company that provides maintenance and
upkeep as well as contracting for office and commercial premises, and
residential properties, have today signed a share purchase agreement for all
outstanding shares in Lemminkäinen Talotekniikka Oy. The debt and cash free
purchase price is EUR 60 million. The price will be paid in cash. Lemminkäinen
will record a significant capital gain from the transaction, which will have a
positive impact on Lemminkäinen's equity ratio. The capital gain will be
specified, after the transaction has been finalised. The realisation of the
transaction will require approval from the Finnish Competition and Consumer
Authority, which Lemminkäinen expects to be admitted by June 2014.
Lemminkäinen's profit guidance for 2014 remains unchanged. 

Lemmikäinen Talotekniikka Oy forms Lemminkäinen's Technical Building Services
business segment. In 2013, the segment's net sales was EUR 221.9 million
(around 10% of Lemminkäinen Group's net sales), operating profit EUR -1.6
million and number of personnel is around 1,700. 

In October 2013 in connection with closer examination of its strategy,
Lemminkäinen announced that it will examine the strategic options for its
technical building services. “We decided to focus on building construction and
infrastructure construction. The divestment will clarify our business portfolio
and concentrate the development of Lemminkäinen to these areas. It will also
increase our financial flexibility,” says Berndt Brunow, Interim President and
CEO at Lemminkäinen. “The transaction brings together the best upkeep and
maintenance as well as contracting professionals and creates a strong domestic
expert. For customers, this means better services and for personnel new
development opportunities.” 

”The transaction enhances Are's services and competitiveness. After the
transaction, we can provide technical property services and contracting
solutions in 24 locations in Finland. The office network and competences of
these two companies complement each other, so we will be even closer to our
customers. We will offer the best technical solutions of the industry and
develop our services continuously," says Heikki Pesu, CEO at Are. 

LEMMINKÄINEN CORPORATION
Corporate Communications

ADDITIONAL INFORMATION:
Ilkka Salonen, Interim CFO
Tel. +358 2071 54524
ilkka.salonen@lemminkainen.com

Investors, analystys:
Katri Sundström, Vice President, Investor Relations
Tel. +358 2071 54813
katri.sundstrom@lemminkainen.com

DISTRIBUTION:
NASDAQ OMX Helsinki
Key media
www.lemminkainen.com


Lemminkäinen:
Together with our customers we create conditions that make living, working and
travelling functional, safe and healthy. We operate in northern Europe and
employ about 7,800 experts. In 2013, our net sales were about EUR 2.2 billion.
Lemminkäinen Corporation's share is quoted on NASDAQ OMX Nordic Exchange
Helsinki. www.lemminkainen.com 

Are Group:
Are Group, which is part of Onvest Group, improves significantly the energy
efficiency of office and commercial premises and residential properties. It
also improves the well-being of the end-users by developing and providing
innovative property services and contracting solutions for the entire life
cycle of the real estate. The company invests especially in smart technical
maintenance and its Sensus concept, which it has developed for contracting. In
2013, Are's net sales were EUR 165 million and operating profit EUR 2.5
million. By the end of year 2013, the company employed 1,235 persons in Finland
and St Petersburg. www.are.fi 

Onvest Group:
The Onvest Group is a significant Finnish family company, with a history
stretching back for a century. The ownership of the company has stayed within
the same family since it was founded. The Onvest Group's operations are
comprised of four business areas: technical trade, building services
contracting, property and renovation services, investment and property
activities. In 2013, Onvest's net sales were EUR 1.7 billion and it provides
roughly 4,200 jobs in eight countries. www.onvest.fi