ADDvise enters into an agreement to acquire Merit Cables

ADDvise Group AB (publ) (”ADDvise”) has today entered into an agreement with the shareholders of the US company Merit Cables Inc. (“Merit Cables”) regarding the acquisition of all shares in Merit Cables, with closing to take place on August 1st, 2018 (the “Acquisition”).

  • The purchase price amounts to MUSD 1.35 (corresponding to MSEK 11.9) and is based on a cash and debt free basis and will be paid in cash.
  • An earn-out of a maximum of MUSD 0.25 (corresponding to MSEK 2.2) may be paid out over two years.
  • The fiscal year of 2017, Merit Cables had a revenue of MUSD 2.55 (corresponding to MSEK 22.5) and an EBITDA of MUSD 0.25 (corresponding to MSEK 2.2).

Reasons for the Acquisition

Merit Cables is a profitable product company, within ADDvise’s business area Healthcare, located in the USA with a wide customer base including several ’Fortune 500’-companies

-          “Through the acquisition of Merit Cables, we expand our product range within the business area Healthcare. We also strengthen our presence and platform in the important US market”, says Rikard Akhtarzand, CEO of ADDvise.

Merit Cables in brief 

The company was founded in 1983 and has its headquarters and production facility located in southern California. Merit Cables manufactures medical lead wires and connection systems. During the fiscal year 2017, Merit Cables had a revenue of approximately MUSD 2.55 and an EBITDA of approximately MUSD 0.25.

Purchase price and financing

The initial purchase price amounts to MUSD 1.35 based on a cash and debt free basis and is paid in cash. A possible earn-out of maximum MUSD 0.25 may be paid given that certain earning targets are met. The earn-out may indicatively be paid in Q2 2019 and Q2 2020. The Acquisition will be financed with own funds as well as with proceeds from the bond issue carried out in July 2018.

Closing is planned to August 1st, 2018.

Advisor

Mangold Fondkommission AB is the financial adviser and Baker McKenzie is the legal advisor to ADDvise in connection with the Acquisition. 

For further information, please contact:

Rikard Akhtarzand, CEO.

+46 765-25 90 71

rikard.akhtarzand@addvisegroup.se

www.addvisegroup.se

Important information

This information is required for ADDvise to disclose under the EU Market Abuse Regulation. The information was submitted for publication on July 24th 2018 at 10:15 CEST.

About ADDvise Group

ADDvise Group AB (publ) is a leading supplier of equipment to healthcare and research facilities. The group consists of approximately 10 subsidiaries organized into two business areas, Lab and Healthcare. Sales are global. The Group has a clear acquisition strategy with the aim of raising shareholder value and expand the business – both geographically and product wise. ADDvise shares are listed on Nasdaq First North and Mangold Fondkommission AB, 08-503015 50, is the Company's Certified Adviser. Additional information is available at www.addvisegroup.com.

About Us

ADDvise Group AB (publ) is a leading supplier of equipment to healthcare and research facilities. The group consists of approximately 10 subsidiaries organized into two business areas, Lab and Healthcare. Sales are global. The Group has a clear acquisition strategy with the aim of raising shareholder value and expand the business – both geographically and product wise. The Group has sales of about 250 MSEK. ADDvise shares are listed on Nasdaq First North Premier. Additional information is available at www.addvisegroup.com.

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