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.