Volati acquires S:t Eriks
Volati has signed an agreement to acquire all shares in S:t Eriks Group AB (“S:t Eriks”), one of Sweden’s leading manufacturers of concrete products and natural stone for infrastructure and landscape architecture. S:t Eriks will become a new business unit within the Industry business area and is expected to contribute positively to Volati’s cash flow and earnings per share for 2018. Volati acquires and develops reasonably valued, profitable and well-run companies, with a focus on long-term value creation. Through the acquisition, Volati is taking a further step towards the financial target of an adjusted EBITA of SEK 700 million by the end of 2019 at the latest.
S:t Eriks is a leading manufacturer of concrete and natural stone products for infrastructure, paving, roofing and water & sewage systems.The products are used primarily in infrastructure projects and landscape architecture. The majority of the sales are to professional customers such as infrastructure and construction contractors. The company has 413 employees and is headquartered in Staffanstorp. For the full year 2017, S:t Eriks’s net sales amounted to SEK 1,038 million, with EBITDA of SEK 91 million and EBITA of SEK 65 million. In 2018, the financial performance has been somewhat weaker due to poor weather conditions for the company.
“We are very pleased at the opportunity to acquire S:t Eriks. It is a well-run company with a long history, stable financial development and competent management. S:t Eriks has a strong market position in all its segments and has successfully expanded its operations through acquisitions in recent years. We see good opportunities to continue developing S:t Eriks, both through add-on acquisitions and organically,” says Nicklas Margård, Head of Business Area Industry.
Volati has signed an agreement to acquire the shares in S:t Eriks from Accent Equity 2012 (approx. 90%) and management and the board (approx. 10%). The acquisition will be conducted at an estimated enterprise value (EV) of approximately SEK 500 million and an EV/EBITDA multiple of 5.5 x earnings for the full year 2017. The purchase consideration for 100 percent of the shares will amount to SEK 260-295 million, depending on the outcome of an additional consideration of up to SEK 35 million. The additional consideration is dependent on the financial performance in S:t Eriks during the years 2018 and 2019. The acquisition will be financed through Volati’s existing cash and credit facilities. The acquisition is conditional on approval from the Swedish Competition Authority, and closing is expected to take place in autumn 2018.
The acquisition of S:t Eriks is expected to have a positive effect on Volati’s results for 2018 and contribute to an increase in return on equity. Pro forma for the acquisition of S:t Eriks, the Volati Group's EBITA for the full year 2017 amounted to SEK 480 million.
For further information, please contact:
Nicklas Margård, Head of Business Area Industry, +46 (0)76-200 85 78, firstname.lastname@example.org
Mårten Andersson, CEO of Volati AB, +46 (0)72-735 42 84, email@example.com
This information is such that Volati AB is obliged to disclose under the EU Market Abuse Regulation (MAR). The information was submitted for publication, through the agency of the CEO of Volati AB, at 07:45 a.m. (CEST) on 17 July 2018.
Mårten Andersson, CEO Volati AB, +46 72-735 42 84, firstname.lastname@example.org
Volati AB (publ)
Engelbrektsplan 1, 114 34 Stockholm, Sweden
Phone: +46 8-21 68 40
Volati is a Swedish industrial group, formed in 2003, organised in four business areas: Trading, Consumer, Akademibokhandeln and Industry. Volati mainly acquires reasonably valued companies with proven business models, leading market positions and strong cash flows and develops them, with a focus on long-term value creation. The strategy is to build on the companies’ identity and entrepreneurial spirit, adding leadership, expertise, processes and financial resources. Volati has operations in 16 countries and, after the acquisition of S:t Eriks, a total of about 2,300 employees and annual sales of approximately SEK 6.7 billion. Volati’s common shares and preference shares are listed on Nasdaq Stockholm. Further information is available at www.volati.se.