HANZA acquires Leden – a billion SEK Finnish manufacturer

HANZA AB has today signed an agreement to acquire Leden Group, a leading Finnish company in advanced mechanics manufacturing with a turnover of approximately SEK 1,1 billion. The acqusition strengthens HANZA's manufacturing cluster and is an important step in the HANZA 2025 strategy.

Leden Group is a contract manufacturer in sheet metal, machining and complex assembly with four production sites in Finland and one in Estonia. The business also includes import, processing and selling of sheet metal and manufacturing of own steel profiles. The company has a strong market position with a diversified customer base from industries such as power management, medical technology, IT infrastructure and industrial automation.

With this acquisition, HANZA is expanding its offering in Finland in particular, but also in the Baltics. Among other things, this means increased capacity and expertise in advanced mechanics manufacturing.

Summary of the transaction
 

• The acquisition includes 100% of the shares in Leden Group Oy.

• The purchase price is based on a multiple of 7 for the EBITA outcome 2025 on a cash and debt-free basis. The purchase price consists of a combination of cash and new shares in HANZA, which gives the sellers the opportunity to participate in HANZA's future value development.

• At closing, a purchase price is paid consisting of:

• • A cash portion of EUR 21 million

• • 2,300,000 issued shares in HANZA, valued at EUR 14 million, approximately SEK 70 per share. This corresponds to a dilution of approximately 5%.

• The purchase price may increase by a maximum of EUR 15 million, dependent on Leden’s earnings development during 2025. The share portion may also increase by 300,000 shares, dependent on HANZA’s share price development in 2025.

• All issued shares in HANZA are subject to lock-up clauses.

• The cash portion of the purchase price is fully financed through credit facilities and existing cash.
   

• The maximum purchase price corresponds to an EV/EBITA multiple of 7 or less on a cash and debt-free basis.

Management comments

"The acquisition of Leden is an important step in achieving our goals under our strategy, HANZA 2025", says Erik Stenfors, CEO HANZA. "With Ledens strong market position and technological expertise, we are significantly strengthening our offer."

”We look forward to being an important part of HANZA”, says Jukka Haapalainen, CEO Leden. ”We share the same values and see great opportunities for even faster profitable growth thanks to HANZAs unique concept in contract manufacturing.”

About the future

The acquisition is expected to be concluded in the first quarter of 2025, following regulatory approvals.

The acquisition is an important part of HANZAs operational plan HANZA 2025.

HANZA reiterates its financial targets for 2025, including SEK 6.5 billion in sales and an operating margin of 8%.

Invitation to audiocast

In connection with the acquisition, HANZA invites investors, analysts and media to a combined conference call and audiocast at 10:00 a.m. today, December 12, 2024.

The acquisition will be presented by CEO Erik Stenfors and CFO Lars Åkerblom. The presentation will be held in English.

If you wish to participate via webcast please use the link below.
https://live.events.inderes.com/audiocast-dec-2024

If you wish to participate via teleconference please register on the linkbelow. After registration you will be provided phone numbers and a conference ID to access the conference. You can ask questions verbally via https://conference.financialhearings.com/teleconference/?id=5009037

Advisers

Pareto Securities AB has acted as financial advisor and Advokatfirman Lindahl as legal advisor to HANZA.

This disclosure contains information that HANZA AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 12-12-2024 07:30 CET.

For further information please contact:
Erik Stenfors, CEO
+46 709 50 80 70
erik.stenfors@hanza.com

Lars Åkerblom, CFO
+46 707 94 98 78
lars.akerblom@hanza.com 

Important information
This press release may contain certain forward-looking statements that reflect HANZA’s current views of future events and financial and operational performance. Words such as "intends", "anticipates", "expects", "may", "plan ", "anticipate" or similar expressions regarding indications or predictions of future developments or trends, and are not based on historical facts, constitute forward-looking information. Forward-looking information is inherently associated with both known and unknown risks and uncertainties because it is dependent on future events and circumstances. Forward-looking statements are not guarantees regarding future results or developments and actual results may differ materially from those set forth in forward-looking information.

About HANZA
HANZA is a global knowledge-based manufacturing company that modernizes and streamlines the manufacturing industry. Through supply-chain advisory services and with production facilities grouped into regional manufacturing clusters, we create stable deliveries, increased profitability and an environmentally friendly manufacturing process for our customers. HANZA was founded in 2008 and today has an annual turnover of approx. SEK 4.6 billion. The company has six manufacturing clusters: Sweden, Finland, Germany, Baltics, Central Europe and China. Among HANZA's clients are leading companies such as 3M, ABB, Epiroc, GE, Getinge, John Deere, Mitsubishi, SAAB, Sandvik, Siemens and Tomra. HANZA is listed on Nasdaq Stockholm's main list.

For more information please visit: www.hanza.com

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