ADDvise signs agreement to acquire Hettich Labinstrument
- ADDvise Group AB (publ) (”ADDvise”) has entered into an agreement with Hans Nilsson Holding AB to acquire all shares in Hettich Labinstrument AB (”Hettich”) with the planned admission on January 31st, 2017 (”the Acquisition”).
- The purchase price amounts to 12.95 million SEK, with two possible earn-outs. The Acquisition is based on a cash and debt free basis.
- The Fiscal year 2016 Hettich had a turnover of 47.8 million SEK and generated an EBITDA of 3.6[1] million SEK.
- Hettich is one of Sweden’s leading companies within instruments, consumables and services for healthcare and research facilities.
- ADDvise and Hettich businesses complement each other well and a number of positive synergies are expected from the acquisition.
Motives for the aqcuisition
Hettich is a profitable business that will contribute to a significant increase in ADDvise’s net sales and operating profit in the segments of instruments, consumables and services to healthcare and research. The Acquisition is strategically important for ADDvise and will increase the range of products and strengthen its presence in the Nordic Markets. The Acquisition will generate both industrial and financial synergies.
- The acquisition strengthens the competence within ADDvise Group as a full supplier in healthcare and the research market, says Rikard Akhtarzand, President and CEO of ADDvise Group AB (publ).
Short about Hettich
The company started its operations in 1995 as a Swedish distributor of laboratory centrifuges from the German Hettich Zentrifugen. The company has over the years increased its product offering and is now a leading supplier of consumables, instruments and laboratory equipment to health care, research and the industrial sector. In addition to sales of products the company has a service department to perform service on medical equipment. For the fiscal year of 2016 Hettich is expected to have a turnover of 47.8 million SEK and to generate an EBITDA of 3.61 million SEK.
Payment and purchase price
The initial purchase price of 12.95 million SEK is based on a cash and debt free basis and is intended to be paid through a combination of cash and newly issued ADDvise shares of series B. The purchase price is based on the contingencies as follows:
- 10.3 million SEK paid in cash on the admission date.
- 2.65 million SEK paid in ADDvise series B-shares on the admission day.
- Earn-out no. 1: Estimated amount is 4.7 million SEK, paid in cash indicative by Q2 2018 provided that EBITDA for fiscal 2017 will reach 5.2 million SEK.
- Earn-out no. 2: Estimated amount is 2.35 million SEK when certain contractual conditions are met. Earn-out no. 2 will be paid through a transfer of warrants to the seller which may be exercised to subscribe for newly issued ADDvise series B-shares as payment in order to set-off of the seller’s claim against ADDvise of 2.35 million SEK.
Admission is planned for January 31st, 2017.
Advisor
Mangold Fondkommission AB is the financial adviser to ADDvise in association with the acquisition and Westermark Anjou AB is the legal adviser.
For further information, please contact:
Rikard Akhtarzand, CEO.
+46 765-25 90 71
rikard.akhtarzand@addvisegroup.se
Important information:
This information is required for ADDvise to disclose under the EU market abuse regulation. The information was submitted for publication on January 26th 2017 at 08:50 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.
[1] Excluding currency effects