HANZA Holding AB (publ) has today acquired Suomen Levyprofiili Oy (“SLP”), a successful Finnish manufacturer of sheet metal mechanics. The deal is an important step in HANZA's ongoing work to expand the Group's development clusters.
SLP has just over 100 employees and operations in a modern production facility in Joensuu, close to HANZA's other factories in Finland. The acquisition complements HANZA's existing manufacturing technologies in Finland, and thus follows the company's business model of creating customer value by linking different factories and offering complete contract manufacturing.
"Regional and complete manufacturing clusters are a recipe for success for our customers, something that has become especially clear during the pandemic," says HANZA's CEO Erik Stenfors. "SLP is a well-managed company that strengthens our offering in Finland, and we welcome their talented employees to HANZA."
The SLP vendors are investors connected to the Finnish investment company Helmet Capital Oy. HANZA will take over immediately and will during 2021 work to develop and integrate the factories in Finland in close collaboration with existing customers.
“We are pleased to now be part of the HANZA Group”, says Aku Lampola, MD of SLP. “Our customers demand a broader manufacturing offer, and now we will be able to develop faster in Joensuu as well as internationally together with other parts of the HANZA Group.”
Financial information and information about the transaction
SLP has a turnover of approx. SEK 150 million with earnings before depreciation (EBITDA) of approximately SEK 14 million (9.3%). The net debt amounts to approx. SEK 22 million. The valuation for 100% of the shares SLP amounts to approx. SEK 33 million. Furthermore, HANZA will take over a shareholder loan to SLP of approximately SEK 15 million upon accession. The valuation of SLP, including the shareholder loan, thus corresponds to approx. 3.4 times EBITDA and an EV / EBITDA multiple of about 5.
The purchase price consists of a cash fixed purchase price, a cash additional purchase price, and a share part of 1.8 M shares in HANZA issued with the support of the Annual General Meeting's authorization. The shares are covered by a so-called lock-up (may not be sold) until and including 1 April 2022. The share capital is thus increased by SEK 180,000 and the number of shares in HANZA after the issue amounts to 32,779,928. The new issue entails a dilution of approx. 5.5%.
Integration costs are estimated at approx. SEK 6 million and are to mainly be charged to the first quarter of 2021. With consideration to integration and acquisition costs, SLP's contribution to HANZA's operating profit during the first year (in 2021) is thus expected to be limited. The full impact of the acquisition on the HANZA Group will be determined by the purchase price allocation in accordance with IFRS, which has not yet been completed.
For more information please contact:
Erik Stenfors, CEO, tel: +46 70 950 80 70, e-mail: firstname.lastname@example.org
Lars Åkerblom, CFO, tel: +46 70 794 98 78, e-mail: email@example.com