Scandinavian Biogas acquires Ekdalens Biotransporter
In Sweden, Scandinavian Biogas AB. a subsidiary of Scandinavian Biogas Fuels International AB one of the Nordic region's largest private producers of vehicle grade biomethane (aka renewable natural gas – RNG) has announced that it is acquiring compatriot logistics service company Ekdalens Biotransporter AB, a market leader in the transport of organic material to and from biogas facilities in southern Sweden.
According to a statement, the acquisition is part of Scandinavian Biogas’s strategy to achieve greater integration across the entire value chain, from organic waste to produced biogas and bio-fertilizer, and the capacity to offer comprehensive transport service to the biogas industry.
Ekdalens Biotransporter is a market leader in the transport of organic material with a focus on substrate and bio-substrate to and from biogas facilities in southern Sweden. The company has had positive operational and financial development in recent years, with several new customers and high capacity utilization.
In 2019, Ekdalens Biotransporter’s net sales amounted to SEK 53.4 million (≈EUR 5.3 million) and the operating profit (EBIT) to SEK 12.8 million (≈EUR 1.3 million).
Biogas production is a growing industrial sector, and reliable substrate suppliers are absolutely crucial for the biogas industry. Biogas producers, therefore, need a strong logistics partner with a high level of expertise. Ekdalens Biotransporter matches this description perfectly. The company’s expertise will be important and advantageous for the entire biogas industry in Sweden, as well as for Scandinavian Biogas’s future growth projects, including the one we are pursuing with farmers in Mönsterås Municipality, said Matti Vikkula, CEO of Scandinavian Biogas.
Substrate logistics integration
Demand for biogas is growing strongly and positive political signals have generated additional interest. The integration of a logistics operator improves the reliability of substrate deliveries, a key factor in the capacity to guarantee high-availability supply for the production plants.
Ekdalens Biotransporter, headquartered in Helsingborg, was founded in 2005 by Ulf Wäktare, the current CEO and owner, and who will continue as the company’s operations manager and will join the management team of Scandinavian Biogas’s Swedish operations.
The company will continue to operate in its current form and the direction of the business will remain unchanged.
Ekdalens Biotransporter has grown rapidly since I started the business fifteen years ago. I see Scandinavian Biogas’s acquisition of the company as an important confirmation that this undertaking was entirely right. I look forward to becoming part of Scandinavian Biogas and working together to ensure the continued development of biogas production in Sweden. As a supplier of substrate for the Scandinavian Biogas plant at Södertörn, we have a well-established long-term relationship, said Ulf Wäktare, CEO and owner of Ekdalens Biotransporter.
Scandinavian Biogas has signed an agreement to acquire 100 percent of the shares in Ekdalens Biotransporter AB. The closing of the transaction is expected by the end of 2020 subject to customary conditions.