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ADDvise Signs Letter of Intent Regarding Acquisition of AB Germa

18 Jul, 2017

ADDvise Group AB (publ) has signed a Letter of Intent with Ferno Norden AS and Ferno LLC regarding an acquisition of 100 percent of the shares in AB Germa.

•    Germa manufactures and sells healthcare products such as vacuum mattresses, child safety solutions, positioning cushions, rehab products and safety products for the military.

•    The purchase price amounts to 13.8 MSEK based on cash and debt-free basis.

•    In addition, Germa’s production facility will be acquired, with an indicative value of 3.2 MSEK.

•    During the fiscal year of 2016, Germa had a turnover of 30.1 MSEK and an EBITDA of 3.4 MSEK.

•    The acquisition is expected to have a positive effect on ADDvise Group’s EPS.

•    The acquisition is subject to due diligence and that the parties agree to enter into a share purchase agreement.

Reasons for the acquisition
Germa is a profitable product company strategically important for ADDvise Group’s business area Healthcare. Germa will contribute with products and knowledge in the field of emergency care and safety products.

– To acquire healthcare product companies is in line with our acquisition strategy. Germa is a perfect fit in that strategy. There are clear synergies between Germa and our Healthcare business area, especially in emergency care, says Rikard Akhtarzand, CEO of ADDvise Group.

Germa in brief
The company was founded 1925 with headquarters located in the southern parts of Sweden. Germa develops and manufactures healthcare products such as vacuum mattresses, child safety solutions, positioning cushions and rehab products. During the fiscal year of 2016, Germa had a turnover of approximately 30.1 MSEK and generated an EBITDA of 3.4 MSEK.

Payment of the purchase price and indicative time schedule

The purchase price amounts to 17 MSEK based on a cash and debt free basis. Germas production facility is included in the purchase price, with an approximate value of 3.2 MSEK. Share purchase agreement and admission date are scheduled to be completed by the end of Q3 2017.

Advisor
Mangold Fondkommission AB is ADDvise Group’s financial advisor and Baker & McKenzie is ADDvise Group’s legal adviser in connection to the acquisition.

For further information, please contact:
Rikard Akhtarzand, CEO

+46 765-25 90 71
rikard.akhtarzand@addvisegroup.se 


Important information

This information is by ADDvise required to disclose under the EU Market Abuse Regulation. The information was submitted for publication on July 18, 2017 at
16:30 CET.
 

About ADDvise Group
ADDvise Group AB (publ) is a leading supplier of equipment to healthcare and research facilities. The group consists of approximately 10 subsidiaries organized into two business areas, Lab and Healthcare. Sales are global. The Group has a clear acquisition strategy with the aim of raising shareholder value and expand the business – both geographically and product wise. The Group has sales of about 250 MSEK. ADDvise shares are listed on Nasdaq First North Premier and Mangold Fondkommission AB, 08-503015 50, is the Company's Certified Adviser. Additional information is available at www.addvisegroup.com.

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