AF Gruppen Acquires Majority Stake in H.A. Bygg Entreprenad AB
AF Gruppen has taken a significant step to reinforce its position in Sweden’s construction sector by acquiring a majority stake in H.A. Bygg Entreprenad AB, a respected specialist in concrete works based in western Sweden. Through its subsidiary, AF Bygg Syd AB, AF Gruppen has agreed to purchase 70 percent of the shares in H.A. Bygg, while the remaining 30 percent will continue to be owned by the company’s employees.
This strategic acquisition reflects AF Gruppen’s continued commitment to strengthening its technical expertise and expanding its footprint in the Swedish construction market, particularly within concrete operations and infrastructure projects.
Strengthening Concrete Operations in Sweden
The acquisition aligns with AF Gruppen’s broader strategy of enhancing its capabilities in concrete construction. Concrete remains a critical component of infrastructure and building projects, especially in technically demanding segments such as water and wastewater treatment facilities, industrial structures, and large-scale civil engineering works.
By bringing H.A. Bygg into the group, AF Gruppen deepens its professional environment within the concrete discipline. The move is expected to generate operational synergies, facilitate knowledge sharing, and enhance project delivery capacity across the Swedish market. It also supports AF Gruppen’s ambition to grow within infrastructure segments that require high levels of technical precision and long-term durability.
H.A. Bygg will continue to operate as a separate company but will become part of AF Bygg Syd AB, under the business area Sweden within AF Gruppen. This structure ensures that H.A. Bygg retains its established identity, management approach, and local expertise, while benefiting from the broader resources and strategic direction of the AF Gruppen organization.
About H.A. Bygg Entreprenad AB
Founded in 1986, H.A. Bygg Entreprenad AB has built a strong reputation over nearly four decades as a leading player in concrete works in western Sweden. The company specializes in complex and high-quality concrete construction projects and has become known for reliability, technical competence, and consistent performance.
H.A. Bygg currently employs 62 professionals and has demonstrated solid financial results in recent years. Between 2022 and 2024, the company recorded an average annual turnover of approximately SEK 360 million, accompanied by a robust operating margin of 10 percent. These figures underscore the company’s operational efficiency and disciplined project execution.
The continued employee ownership of 30 percent of the company reflects a long-standing commitment to engagement and shared responsibility. This ownership structure is expected to remain a key strength, ensuring that employees stay closely aligned with the company’s performance and long-term development.
Strategic Rationale Behind the Acquisition
According to Bård Frydenlund, Executive Vice President at AF Gruppen, the acquisition represents a natural and well-aligned expansion of the group’s Swedish operations.
He expressed strong confidence in H.A. Bygg’s track record and organizational culture, emphasizing that the company has delivered stable and strong performance over time. He also highlighted that H.A. Bygg’s culture and working methods align closely with AF Gruppen’s own values and operational principles.
The acquisition is expected to enhance AF Gruppen’s capabilities in constructing water and wastewater treatment facilities, an area of increasing importance in Sweden. As municipalities and industrial operators invest in modernizing infrastructure to meet environmental and sustainability standards, demand for advanced concrete solutions is rising. By integrating H.A. Bygg’s expertise, AF Gruppen strengthens its competitive position in this growing segment.
Cultural Alignment and Shared Values
Cultural compatibility played a key role in the transaction. Both companies emphasize value-based leadership, safety, and ethical conduct in project execution.
Kai Simfors, Managing Director of H.A. Bygg, stated that the company has developed a positive working relationship with AF Bygg Syd and looks forward to closer collaboration. He noted that both organizations share a common business philosophy: creating value and opportunities through project activities while maintaining an uncompromising approach to safety and ethics.
This shared foundation is expected to support a smooth integration process. Rather than imposing structural changes, AF Gruppen intends to build upon H.A. Bygg’s existing strengths while providing strategic support and access to a broader project portfolio.
Transaction Details and Financial Structure
The agreed enterprise value for 100 percent of the shares in H.A. Bygg is up to MSEK 140 on a debt-free basis. The final consideration includes a performance-based component linked to profitability targets for the period 2026 to 2028.
Part of the purchase price is therefore contingent upon the company achieving agreed financial results over the coming years. Any additional consideration tied to these targets will be paid in 2029 if the performance criteria are met. This structure aligns incentives between AF Gruppen and H.A. Bygg’s management and employees, ensuring a continued focus on operational excellence and profitability.
The consideration payable at completion will be settled in cash. The transaction remains subject to approval by the Swedish Competition Authority and other relevant regulatory bodies. Completion is expected during April 2026, provided all required approvals are obtained.
Market Outlook and Long-Term Impact
The Swedish construction market continues to evolve, with increased attention on infrastructure resilience, sustainability, and modernization of public utilities. Investments in water and wastewater treatment plants, in particular, are expected to remain strong due to environmental regulations and the need for upgraded facilities.
By strengthening its concrete operations through the acquisition of H.A. Bygg, AF Gruppen is positioning itself to capture opportunities in technically demanding infrastructure projects. The combination of AF Gruppen’s scale and financial strength with H.A. Bygg’s specialized expertise creates a platform for long-term growth.
The transaction also reinforces AF Gruppen’s broader Nordic strategy of expanding through targeted acquisitions that enhance technical competence and regional presence. Rather than pursuing rapid expansion for its own sake, the group continues to focus on companies with strong performance records, cultural alignment, and sustainable business models.
SOURCE LINK: https://www.afgruppen.com/
