Relais Group Plc expands in Norway through the acquisition of the workshop equipment business of NDS Group AS
Relais Group Plc
Inside Information 1 August 2023 12.35 p.m. EEST
Relais Group Plc, a leading consolidator and acquisition platform on the vehicle aftermarket in the Nordic countries, has today signed an agreement regarding the acquisition of the Norwegian workshop equipment business unit of NDS Group AS, comprising the assets and personnel of the AutoMateriell business and the shares in Nordic Lift AS. The closing of the acquisition will take place today. The acquired business unit will be consolidated into Relais Group from the beginning of August 2023.
AutoMateriell is a well-established actor in the Norwegian workshop equipment business, with a history starting in 1939. AutoMateriell is highly regarded by customers as a premium supplier of workshop equipment solutions for vehicle import and dealer chains as well as for e.g., defence and marine sectors. AutoMateriell is located near Drammen in Norway.
Nordic Lift provides workshop equipment for a wide range of customers in Norway. Nordic Lift is located near Trondheim in Norway.
In 2022 the total revenue of the business unit was approximately NOK 198 million and the operating profit approximately NOK 13 million (unaudited, Norwegian GAAP). The enterprise value of the acquired business unit is approximately NOK 70 million and the provisional purchase price is approximately NOK 58 million. An additional consideration of up to approximately NOK 29 million will be payable based on financial performance for the full year 2023. The acquired business unit will transfer free of interest-bearing debt and the preliminary net assets transferring will be approximately NOK 53 million. The acquisition will be financed with existing cash reserves.
Key benefits of the acquisition:
- The acquired business unit will form a new platform for growth within Relais Group.
- The acquired business unit has a strong market position on the Norwegian market, and especially the AutoMateriell brand is extremely strong and well known.
- Electrification will continue to drive sales of workshop equipment and related spare parts and services. Relais Group will be able to capitalise on Norway’s head start in electrification compared to other Nordic countries.
Arni Ekholm, CEO of Relais Group Plc:
"I am very pleased to welcome AutoMateriell and Nordic Lift to join the growing Relais Group family. I am certain that Relais Group will provide an excellent new home for AutoMateriell and Nordic Lift from the point of view of employees, customers, suppliers as well as other stakeholders.
We have followed the workshop equipment business for a while. In addition to the normal underlying demand for workshop equipment, spare part and services, the global megatrend of electrification drives a long-term demand for building EV-ready workshops, as some equipment is EV specific and other equipment needs to be upgraded. Norway has been a front runner in electrification and AutoMateriell and Nordic Lift have extensive experience in working with EV workshops for e.g., the biggest EV supplier in the Norwegian market and other authorised EV workshops. Having the AutoMateriell and Nordic Lift team as part of our Group will allow us to build on that solid foundation."
Further information:
Arni Ekholm, CEO
Phone: +358 40 760 3323
E-mail: arni.ekholm@relais.fi
Relais Group
Relais Group is a leading consolidator and acquisition platform on the vehicle aftermarket in the Nordic and Baltic countries. We have a sector focus in vehicle life cycle enhancement and related services. We also serve as a growth platform for the companies we own.
We are a profitable company seeking strong growth. We carry out targeted acquisitions in line with our growth strategy and want to be an active player in the consolidation of the aftermarket in our area of operation. Our acquisitions are targeted at companies having a good strategic fit with our group companies.
Our net sales in 2022 was EUR 260.7 (2021: 237.8) million. During 2022, we completed a total of three acquisitions. We employ approximately 1,000 professionals in six different countries. The Relais Group share is listed on the Main Market of Nasdaq Helsinki with the stock symbol RELAIS.