Norsk Jernbanedrift sold to Herkules Capital

Press release from Herkules Capital AS:

Norsk Jernbanedrift AS (NJD) and Herkules Private Equity Fund III (Herkules) initiate a partnership to further develop the company.

NJD is one of the leading railway entrepreneurs in Norway and performs maintenance, operations, new builds, safety tasks and project execution for the railway infrastructure in Norway. The company was established in 2005 and has shown impressive growth in both revenues and employees. For 2010 the company reported revenues of NOK 226 million, and currently there are 116 employees. The headquarters are located in Porsgrunn, and NJD has in addition five local offices. NJD is involved in major railway projects across Norway.

Herkules will become the majority owner of NJD, and key employees that currently hold shares will maintain a considerable ownership share and continue to be active in the company.

The Norwegian railway infrastructure will require significant maintenance and investments over the next years. The implementation of the new transnational signaling system ERTMS will also impact the activity within and demand for railway infrastructure services.

“We see substantial opportunities in the market for NJD, and the timing is right to engage a professional partner like Herkules to further develop the company” says Ernst Terje Jakobsen, CEO at NJD.

“We are looking forward to co-operating with the competent management team at NJD, who has built an impressive company. Herkules will contribute to improved financial flexibility, and the investment rate will increase. We have strong belief in NJD, and that the company has the necessary competence to build a leading player which will impact and improve the standard of the Norwegian railway” says Tore Rynning-Nielsen, Senior Partner at Herkules.