Brief: Alimak Group Enters Into Agreement To Acquire Tractel

Alimak AB (publ)

02/08/2022 07:08

Aug 2 (Reuters) - Alimak Group AB (publ)  ALIG.ST :
    * MAKES A TRANSFORMATIONAL ACQUISITION OF TRACTEL, AND
ACCELERATES
ITS PROFITABLE GROWTH STRATEGY
    * CONSIDERATION AMOUNTS TO MEUR 500, CORRESPONDING TO
APPROXIMATELY SEK 5.3 BILLION
    * TRACTEL  REVENUE DURING PERIOD OF 12 MONTHS ENDING ON 30
JUNE
2022 INCREASED BY 7% AND AMOUNTED TO MEUR 201
    * TRANSACTION IS EXPECTED TO CLOSE IN SECOND HALF OF 2022
AND
ALIMAK GROUP AIMS TO CARRY OUT RIGHTS ISSUE DURING Q4 2022
AND/OR Q1 2023
    * TO FINANCE ACQUISITION, SVENSKA HANDELSBANKEN IS PROVIDING
A
LONG-TERM FACILITY OF MEUR 300 AND A BRIDGE LOAN FACILITY
    * POST-CLOSING OF TRANSACTION, BRIDGE LOAN FACILITY IS
INTENDED TO
BE REPAID WITH PROCEEDS FROM A NEW SHARE ISSUE WITH PRE-EMPTIVE
RIGHTS FOR ALIMAK GROUP'S SHAREHOLDERS
    * WITH FULL EFFECT 2026, EXPECTED ANNUAL CASH FLOW POTENTIAL
FROM
COMMERCIAL AND COST SYNERGIES AMOUNTS TO ABOUT MSEK 150
    * ACQUISITION-RELATED COSTS, INCLUDING TRANSACTION,
FINANCING,
INTEGRATION AND RESTRUCTURING COSTS, WILL AMOUNT TO
APPROXIMATELY MSEK 55, EXPECTED TO BE RECOGNIZED IN 2022 AND IN
2023
    * TRACTEL WILL FROM START CONTINUE TO OPERATE UNDER ITS
EXISTING
BRANDS AND BE REPORTED AS A NEW DIVISION WITHIN ALIMAK GROUP
    * POST COMPLETION OF TRANSACTION AND RIGHTS ISSUE, NET DEBT
EBITDA
RATIO WILL INCREASE TO 2.9X AND TEMPORARILY EXCEED LONG-TERM
FINANCIAL TARGET
    * WITH OPPORTUNITIES IDENTIFIED THROUGH ACQUISITION AND
INCREASED
DEMAND FOR RENEWABLE ENERGY, BOARD OFALIMAK GROUPHAS CONCLUDED
ON STRATEGIC REVIEW OF WIND DIVISION AND DECIDED TO DEVELOP
DIVISION AS PART OFALIMAK GROUP
    * SHARHOLDERS HOLDING ABOUT 52.6% OF SHARES IN ALIMAK
COLLECTIVELY
HAVE EXPRESSED SUPPORT OF TRANSACTION

Source text for Eikon:  ID:nWkr1Dg3Jw 
Further company coverage:  ALIG.ST 

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