ADDvise signs Letter of Intent regarding acquisition of LabRum AB

• ADDvise Group AB (publ) (”ADDvise”) has signed a Letter of Intent with LabRum Holding AB regarding an acquisition of 100 percent of the shares in LabRum AB (”the Acquisition”).
• LabRum AB ("LabRum") is one of Sweden's leading companies within laboratory furniture, safety ventilation and laboratory equipment for both the public and private sector.
• The Acquisition is subject to a conducted due diligence and that the parties will agree to enter into a Share Purchase Agreement.
• If LabRum is consolidated on pro forma basis from October 1, 2014 - September 30, 2015, ADDvise turnover would amount to 224.3 (151.8) MSEK with an EBITDA of 14.7 (7.3) MSEK.
• The purchase price amounts to 34.5 MSEK, with a possible additional earn-out of 11.5 MSEK, and is intended to be paid through a combination of cash, newly issued ADDvise shares of series B and loans.

Reasons for the acquisition

The acquisition is another step in the growth strategy adopted by the Board in ADDvise in early 2010. The acquisition is strategically important for business area Lab and will increase the range of products and significantly strengthen the competence within laboratory furniture, safety ventilation and laboratory equipment. The Acquisition creates Scandinavia’s leading group within laboratory furniture and safety ventilation and large industrial as well as financial synergies are expected to be achieved.

– An acquisition of LabRum enables a higher growth rate and gives us extensive expertise and vital sales channels. Together we’ll become the largest supplier of laboratories within the Nordic countries, says Rikard Akhtarzand, CEO of ADDvise.

LabRum in short

LabRum is one of Sweden’s oldest companies within sales of laboratory equipment. Customers include both private companies and the public sector. LabRum has approximately 20 employees in Sweden and Finland. The financial year 2014/2015 LabRum had a turnover of 72.5 MSEK and generated an EBITDA of 7.4 MSEK.

Proforma

If LabRum is consolidated on pro forma basis from October 1, 2014 - September 30, 2015, ADDvise proforma turnover would amount to 224.3 (151.8) MSEK with an EBITDA of 14.7 (7.3) MSEK. This represents an increase of 48 percent in turnover and 100 percent in EBITDA[1].

Payment of the purchase price

The initial purchase price of 34.5 MSEK is intended to be paid through a combination of cash, newly issued ADDvise shares of series B and loans. An additional possible earn-out estimated to 11.5 MSEK is based on 116 percent of LabRums reported EBITDA for the period May 1, 2015 - April 30 in 2016 and is to be settled subsequently.

Terms of the Acquisition's completion

The Acquisition is subject to a conducted due diligence and that the parties will agree to enter into a Share Purchase Agreement.

Indicative time schedule

ADDvise’s due diligence is expected to be completed early 2016 as well as signing of the Share Purchase Agreement and the completion of the Acquisition.

Advisors

Mangold Fondkommission AB is financial advisor to ADDvise during the Acquisition and Baker & McKenzie is the legal advisor.

For further information, please contact:

Rikard Akhtarzand, CEO of ADDvise

+46 765-25 90 71

rikard.akhtarzand@addvisegroup.se

www.addvisegroup.se

About ADDvise

ADDvise Group AB (publ) is an expansive group which through its subsidiaries IM-Medico Svenska AB, KEBO Inredningar Sverige AB, ADDvise Tillquist AB, Sonesta Medical AB, Sonesta Medical Inc and Surgical Tables Inc offers comprehensive solutions in the form of products and services to healthcare and research facilities. ADDvise Group's customers are located in both the private and public sectors. The Company's share is listed on First North Premier and Mangold Fondkommission AB, +46 8-503015 50, is the company's Certified Adviser and liquidity provider.

[1] ADDvise and LabRum have different fiscal years. Therefore proforma calculation regards the period 2014-05-01 - 2015-04-30 for LabRum and the period 2014-10-01 - 2015-09-30 for ADDvise.