ADDvise signs agreement to acquire LabRum AB

08-02-2016   Non-regulatory press release

Motives for the acquisition The acquisition of LabRum is another step in the growth strategy adopted by the Board of ADDvise in early 2010. LabRum contributes to a significant increase in ADDvise turnover and operating profit. The acquisition is strategically important for the business area Lab and will expand the range of products, strengthen the competence in laboratory furniture, safety ventilation and laboratory equipment as well as strengthening its presence in the Nordic market. The acquisition creates Scandinavia’s leading group in laboratory furniture and large industrial as well as financial synergies are expected to be achieved.

Short about LabRum LabRum is one of the oldest companies within laboratory furniture, safety ventilation and laboratory equipment. The customers include both private companies and the public sector in the Nordic region. Some of the customers are the Karolinska Institute, the Swedish Police Authority, a number of universities and Bombardier Transportation. LabRum currently has about 20 employees. The Fiscal year 2014/2015 LabRum had a turnover of 72.5 million SEK and generated an EBITDA of 7.4 million SEK.

Pro forma If LabRum is consolidated on pro forma basis from October 1st, 2014 - September 30th, 2015, ADDvise pro forma turnover would amount to 224.3 (151.8) MSEK with an EBITDA of 14.7 (7.3) MSEK. This represents an increase of 48 percent in turnover and 100 percent in EBITDA1.

Total consideration The total purchase price of approximately 46.0 million SEK will be distributed as follows:

• 34.5 million SEK is paid on the admission date

• Approximately 11.5 million SEK  is paid in earn-out consideration

• The earn-out consideration is calculated as 116 percent of LabRum’s reported EBITDA for the period May 1st, 2015 - April 30th, 2016 Admission is planned for March 1st, 2016.

Advisor Mangold Fondkommission AB is financial advisor to ADDvise in connection with the acquisition and Baker & McKenzie KB is the legal advisor.

 

For further information, please contact:

Rikard Akhtarzand, CEO, +46 765-25 90 71

rikard.akhtarzand@addvisegroup.se

www.addvisegroup.com

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(1) Since ADDvise and LabRum have different Fiscal years the pro forma is calculated for the period  2015-05-01 - 2015-04-30 for LabRum and for the period 2014-10-01 - 2015-09-30 for ADDvise.

 

About ADDvise Group AB

ADDvise Group AB (publ) is an expansive group which through its subsidiaries IM-Medico Svenska AB, KEBO Inredningar Sverige AB, ADDvise Tillquist AB, Sonesta Medical AB, Sonesta Medical Inc and Surgical Tables Inc offers comprehensive solutions in the form of products and services to healthcare and research facilities. ADDvise Group's customers are located in both the private and public sectors. The Company's share is listed on First North Premier and Mangold Fondkommission AB, +46 8-503015 50, is the company's Certified Adviser and liquidity provider.