Pöyry has agreed to sell parts of its water and environment operations to Lahmeyer Holding GmbH. The agreement involves the sale of the entire share capital of Pöyry Environment GmbH (Germany) and Pöyry Tanzania Ltd (Tanzania). Both businesses carry out water and environment engineering services primarily financed by Official Development Assistance (ODA) throughout the developing world.
The combined annual net sales of these two units were approximately EUR 12 million in 2011 and they employ approximately 70 people. Pöyry will recognise a loss of about EUR 5 million in the first quarter of 2012 on the transaction. The transaction is cash flow positive.
Closing of the German transaction took place on 1.3.2012. Closing of the Tanzanian transaction is subject to local competition authority approval and is expected to take place during the second quarter of 2012. Both units will be excluded from Pöyry's financial reporting as of 1 January 2012.
Pöyry Capital, the investment banking arm of Pöyry PLC, acted as financial advisor to Pöyry on this transaction.