Ferronordic acquires authorized workshop in Lorsch, Germany
Ferronordic has signed an agreement to acquire Truckservice Bergstrasse GmbH & Co KG, an authorized Volvo and Renault Trucks workshop in Lorsch, Hessen. The acquisition is in line with Ferronordic’s strategy to expand and improve its service network in Germany. The investment amounts to EUR 4.0m (SEK* 41m). The transaction is expected to be completed in October 2021.
Truckservice Bergstrasse GmbH & Co KG (“Bergstrasse”) is operating an authorized workshop for service and repairs of Volvo and Renault trucks. In addition, Bergstrasse operates a small business for trucks rental and sales of used trucks. The company is also service partner for Volvo Penta. The workshop is located in Lorsch, a town in the Bergstrasse district in Hessen, approx. 60 km south of Frankfurt. The location is directly adjacent to the A67 and A6 motorways between Frankfurt and major cities like Mannheim and Stuttgart in southern Germany.
Through the acquisition, Ferronordic will gain another strategic position in an important part of Hessen. The Bergstrasse area, which includes the southern parts of the Rhein-Main area, has a significant population of Volvo and Renault trucks and is important to Ferronordic’s objective of expanding its service network to grow market share and increase its aftermarket business in Germany.
In 2019 and 2020, Bergstrasse had an average revenue of approx. EUR 7.0m (SEK* 71m) with an average operating profit of approx. EUR 0.7m (SEK* 7m). Excluding the two managing directors, who are also the sellers and will leave shortly after the deal is completed, Bergstrasse has 23 employees.
The preliminary purchase price for the shares in Bergstrasse is EUR 4.0m (SEK* 41m), based on EUR 0.8m (SEK* 8m) of expected net asset value and EUR 3.2m (SEK* 33m) of goodwill. The real estate where the workshop is located is not included in the deal but will be leased for a period of at least five years.
The transaction is expected to be completed in October 2021. Bergstrasse will subsequently be integrated in Ferronordic’s German business during 2021 and 2022.
Lars Corneliusson, Ferronordic’s CEO, comments: “Truckservice Bergstrasse is a great workshop in strategic location. This transaction is fully in line with our strategy in Germany. We are excited about this acquisition and look forward to welcoming the Bergstrasse employees to Ferronordic. We will work together to build a leading service and sales company in Germany”.
*According to the EUR/SEK exchange rate per 29 September 2021.
The information was submitted for publication on 29 September 2021, 13:00 CET.