* ADDvise Group AB (publ) (”ADDvise”) has signed a Letter of Intent with
LabRum Holding AB regarding an acquisition of 100 percent of the
shares in LabRum AB (”the Acquisition”).
* LabRum AB (\"LabRum\") is one of Sweden\'s leading companies within
laboratory furniture, safety ventilation and laboratory equipment for
both the public and private sector.
* The Acquisition is subject to a conducted due diligence and that the
parties will agree to enter into a Share Purchase Agreement.
* If LabRum is consolidated on pro forma basis from October 1, 2014 -
September 30, 2015, ADDvise turnover would amount to 224.3 (151.8)
MSEK with an EBITDA of 14.7 (7.3) MSEK.
* The purchase price amounts to 34.5 MSEK, with a possible additional
earn-out of 11.5 MSEK, and is intended to be paid through a
combination of cash, newly issued ADDvise shares of series B and
loans.
Reasons for the acquisition
The acquisition is another step in the growth strategy adopted by the
Board in ADDvise in early 2010. The acquisition is strategically
important for business area Lab and will increase the range of products
and significantly strengthen the competence within laboratory furniture,
safety ventilation and laboratory equipment. The Acquisition creates
Scandinavia’s leading group within laboratory furniture and safety
ventilation and large industrial as well as financial synergies are
expected to be achieved.
– An acquisition of LabRum enables a higher growth rate and gives us
extensive expertise and vital sales channels. Together we’ll become the
largest supplier of laboratories within the Nordic countries, says
Rikard Akhtarzand, CEO of ADDvise.
LabRum in short
LabRum is one of Sweden’s oldest companies within sales of laboratory
equipment. Customers include both private companies and the public
sector. LabRum has approximately 20 employees in Sweden and Finland. The
financial year 2014/2015 LabRum had a turnover of 72.5 MSEK and
generated an EBITDA of 7.4 MSEK.
Proforma
If LabRum is consolidated on pro forma basis from October 1, 2014 -
September 30, 2015, ADDvise proforma 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 EBITDA\[1\].
Payment of the purchase price
The initial purchase price of 34.5 MSEK is intended to be paid through a
combination of cash, newly issued ADDvise shares of series B and loans.
An additional possible earn-out estimated to 11.5 MSEK is based on 116
percent of LabRums reported EBITDA for the period May 1, 2015 - April 30
in 2016 and is to be settled subsequently.
Terms of the Acquisition\'s completion
The Acquisition is subject to a conducted due diligence and that the
parties will agree to enter into a Share Purchase Agreement.
Indicative time schedule
ADDvise’s due diligence is expected to be completed early 2016 as well
as signing of the Share Purchase Agreement and the completion of the
Acquisition.
Advisors
Mangold Fondkommission AB is financial advisor to ADDvise during the
Acquisition and Baker & McKenzie is the legal advisor.
For further information, please contact:
Rikard Akhtarzand, CEO of ADDvise
+46 765-25 90 71
rikard.akhtarzand@addvisegroup.se
www.addvisegroup.se
About ADDvise
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.
\[1\] ADDvise and LabRum have different fiscal years. Therefore proforma
calculation regards the period 2014-05-01 - 2015-04-30 for LabRum and
the period 2014-10-01 - 2015-09-30 for ADDvise.
