Relais Group Plc is expanding to Denmark by acquiring majority interest in SEC Scandinavia A/S, a company specialising in lighting solutions for light commercial vehicles

Relais Group Plc

Company release 16 January 2020, at 6.15 p.m.

An importer and technical wholesaler of electrical equipment and spare part business for vehicles, Relais Group Plc (“Relais”, “Relais Group”) has today, on 16 January 2020, agreed it will acquire a 70 percent majority interest in the Danish SEC Scandinavia A/S (“SEC”). The sellers are Leif Daa Holding A/S and Goppe A/S, which will remain SEC minority owners. In the Nordic Countries, Relais has operations in Finland, Sweden and Norway, and with this acquisition the company is expanding into the Danish market. The acquisition strengthens Relais’s product portfolio and vehicle lighting expertise while increasing the company’s cross-selling potential.

Founded in 1991, SEC is a wholesaler specialised in auxiliary and working lights, power management systems and automotive camera systems for commercial vehicles, and also has its own strong brands and representations. The company exports its products to Sweden, Norway, Germany, Netherlands and the United Kingdom. The company employs seven people.

SEC’s unaudited turnover in 2019 amounted to EUR 2.1 million, EBITDA EUR 0.2 million, operating profit EUR 0.2 million and result EUR 0.1 million. SEC’s balance sheet total on 31 December 2019 was EUR 0.9 million and shareholders’ equity EUR 0.3 million.

The acquisition price is EUR 0.8 million and is paid in cash. The company’s debt-free value is EUR 1.1 million. The acquisition will be carried out on 16 January 2020, and SEC will be reported as part of Relais Group as of 1 January 2020. The contract includes a mutual put and call option for the 30 percent minority shares of SEC Scandinavia A/S, valid between 1 January and 30 June 2022. The final acquisition price will be based on the target’s EBITDA for the financial year 2021.

Relais Group CEO Arni Ekholm comments:

“Relais aims to be an active player in vehicle aftermarket consolidation in the Nordic and Baltic countries. With the acquisition, we have a foothold in the Danish market for commercial vehicle equipment, which is an excellent support for our strategic objectives and reinforces the foundation of our future growth strategy. SEC has interesting product areas and representations, as well as specialised expertise in vehicle interior lighting and vehicle camera systems, among others. We are delighted that we will get a strong specialist such as SEC as part of our group and can serve also Danish customers with our broad range of products.”

Relais Group Plc

Board of Directors

Further information

Relais Group Plc

Arni Ekholm, CEO

e-mail: arni.ekholm@relais.fi

+358 40 760 3323

Relais Group Oyj

Pekka Raatikainen, CFO

e-mail: pekka.raatikainen@relais.fi

+ 358 50 553 4094

Certified advisor:

Evli Pankki plc, tel. +358 40 579 6210

Relais Group in brief

Relais Group is an importer and technical wholesaler that actively develops its vehicle electrical equipment and spare parts business operations in the Nordic and Baltic countries. Relais creates added value for its customers by offering vehicle spare parts, electrical equipment and specialist services throughout the life cycle of vehicles in a reliable, efficient and timely manner. As a strongly growth-oriented company, Relais aims to be an industry forerunner in the vehicle life cycle enhancement business. The reported net sales of Relais Group amounted to EUR 72.5 million in 2018 and, illustrating the impact of Relais' acquisition of ABR and Huzells in May 2019, the pro forma net sales of Relais Group amounted to EUR 119 million in 2018. The company employs more than 260 people in five countries. Relais Group shares are listed on the Nasdaq First North Growth Market Finland marketplace and the share trading code is RELAIS.
 

www.relais.fi