Translation: Original published in Finnish on 7/2/2025 at 7:45 am EEST.

GRK announced on July 1, 2025, that it had acquired the share capital of ASM Kiviainespalvelu Oy to strengthen its circular economy services. While the acquisition is small by GRK's standards, it is significant in terms of the circular economy business. Through the acquisition of ASM, GRK will increase its capacity to process circular economy materials, improving the company's position from competitive and efficiency perspectives. Our stance on this transaction is neutral. We will include the acquisition's impact on our estimates in our next update.

Acquisition increases capacity for circular economy services and creates conditions for earnings growth

GRK acquired ASM Kiviainespalvelu Oy's share capital on July 1, 2025. The acquired company's business consists of circular material processing facilities and the production and sale of aggregates. In our view, the latter is a completely new area of expertise for GRK. The transaction will increase the reuse/capacity of by-products and waste from GRK's construction sites, which we estimate will at least give GRK an advantage when bidding on projects (a more eco-efficient option). A wider and closer network of processing facilities will also support the company's business through more efficient logistics and better access to circular materials. The transaction will thus strengthen GRK's vertical position in the infrastructure industry, as well as improve the company's ability to achieve its objectives regarding the production of circular services, profitability and corporate responsibility.

Transaction is small for GRK, but significant for the environmental technology business

In 2024, ASM Kiviainespalvelu had revenue of approximately 5.5 MEUR and an EBIT of 0.9 MEUR (16% of revenue). The acquired company's revenue grew until 2023, after which it fell to 2020 levels. While the acquired business is small in regard to GRK's scale, it is significant in terms of the environmental technology business (2024: ~15 MEUR).

The parties did not disclose the transaction price, leaving the valuation of the acquisition open to speculation. The company had previously announced its intention to grow this business both in Finland and abroad. The company had indicated that the funds raised through the IPO would be used for acquisitions, so some level of buying activity was to be expected in the short term. For these reasons, our stance on this deal is neutral. We will include the acquisition's impact on our estimates in our next update.